Market analysis for next week
- Yash Mehta
- Jun 26, 2021
- 3 min read
Updated: Oct 31, 2021
In the last week's Market Analysis we have discussed that market was bullish and sentiments are also positive. We were expecting some consolidation in range of 15400-16000 before market resumes its upward journey. Market did the same thing in last week. Most of the days it opened gap up but started sliding down in intraday.
Nifty is up by 0.4% and BankNifty is flat and up by 1.5% in last week.
I had shared one fundamentally strong stock in YouTube last week. Stock is near to its all-time high and stock has the potential of giving 100% returns. Stock had formed inverse head and shoulder reversal pattern and is bullish for long term.
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:
Nifty daily chart is bullish, and market is buy on dips. Short-term traders can wait for dip till 15431 to take fresh position and positional trader can wait for 15000 levels. 16000 is psychological level and can be resistance for Nifty in the future.
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 Fin Service
Nifty FMCG
Nifty IT
Short-term traders can track these sectors and the constituents chart.
Let's see some chart of Nifty 50 and BankNifty constituents.
Hdfc Life (daily chart):
Hdfc life has broken supply zone above 719. Stock is bullish and it will face a small hurdle near its all-time high level of 746.
TCS (daily chart):
TCS now broke it's all-time high and gave a close above it. Stock is bullish from short term and investment perspective.
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.
I like the way Yash doing this and I will be eagerly waiting for this every weekend. Yash, you have nice presentation skill with even any new trader can understand.