Market analysis for next week
- Yash Mehta
- Jun 19, 2021
- 3 min read
In the last week's Market Analysis we have discussed that market was bullish and sentiments are also positive. We told that 15431 (previous all-time high) can be a support for the market. On Friday, Nifty made low of 15450 and then bounced back 250 points on same day. In our telegram group, we have updated that we are buying stocks for short term when Nifty was near low level.
Now if you are prepared with your analysis and ready with your plan, then you just have to wait for the levels to execute your plan.
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Nifty is up by -0.73% and BankNifty is flat and up by -1.4% in last week.
I had shared one fundamentally strong stock in YouTube last week. Stock is breaking all-time high and stock has the potential of giving 100% returns.
One can check the video and understand the rationale behind picking this stock.
Don't forget to subscribe to our channel and like the video.
Some of the major news and events that happened in this week are:
Click on the news and it will redirect you to the article.
Now let's see what can happen in Nifty, BankNifty and broader market for next week. Some charts of the constituents are also shared at the end as a bonus for all the readers, so read until the end.
We won't be looking at weekly chart as the support is currently far from current market price.
Nifty weekly support is 13600 and BankNifty weekly is 29000.
Nifty
Daily time frame chart:
In last week's analysis we discussed Doji in Nifty daily chart.
It went below low of the doji and then Nifty price fall 400 points in same week. This is the basic of Technical Analysis that a trader should learn.
Add stocks for short term if Nifty approaches support level at 15430 or 15000.
BankNifty
Daily time frame chart:
Currently BankNifty is trading in between these demand (34200-34450) and supply (36350-36550) zones. If supply breaks then possible resistance for BankNifty would be it's all-time high 37708. Although Nifty is trading at all-time high levels, BankNifty is still 7% away from it's all-time high. If BankNifty reaches that level, then it will give more strength to Nifty because Banking shares has a huge contribution in Nifty. Last week BankNifty retested demand zone again. So as long as BankNifty doesn't close below 34200, BankNifty will be bullish.
BankNifty is just consolidating near its previous demand region. It might be getting ready for a big move now.
Some sectors that are looking good for short term and positional trades are:
Nifty Consumption
Nifty Energy
Nifty Fin Service
Nifty FMCG
Nifty IT
Nifty Realty
Nifty Consumption, Nifty FMCG and Nifty IT is new sectors that are positive now. Short-term traders can track these sectors and the constituents chart.
Let's see some chart of Nifty 50 and BankNifty constituents.
HUL (Daily chart):
HindUnilever if breaks 2500 (resistance line) can be positive for short-term traders. Major resistance available at all time high (2614).
Infosys (Daily chart):
Infosys broke it previous high, which was two months back. Currently, stock looks strong in short-term.
I am sharing these charts only for study purpose. One can track these stocks for short-term perspective. Plan your trade with proper stop loss and target and then take action.
Also, if you have any chart that we can track then share it with us in the comment section.
Conclusion:
Currently, market is looking bullish as it has broken resistance and supply zone. Short-term sentiments are bullish and one can use buy on dips opportunity in short term. We can expect some consolidation for a few more days before we resume upward journey.
One can learn this simple art of Technical Analysis by reading following blogs and practicing daily.
Readers can checkout and read first three blogs of Technical Analysis here:
Thanks for giving your precious time in reading this blog. I hope I have added value to your market analysis for next week. Like and share with others too if we can create value for others.
Don't forget to give a Like to this blog if this has helped you. It serves as a motivation for us to share more analysis blogs with our friends.
Nice analysis Yash, well said. Though I missed at 15450 because of time zone differences people should have made good money had they followed last week analysis and planned. I usually plan and this series helps me to prepare and face the next week. Really much appreciated from bottom of heart Yash!