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Market analysis for next week

  • Writer: Yash Mehta
    Yash Mehta
  • Jul 3, 2021
  • 4 min read


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 down by -0.9% and BankNifty is flat and down by -1.6% in last week.


I had shared one fundamentally strong microcap company on YouTube. It's in niche business and stock can give decent 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:



Nifty daily chart is range bound now for one and half month. 15920 is the resistance and 15430 is the support for Nifty. If any of these levels break, then expect Nifty to move in that direction. Short-term traders can wait for 15400 to buy stocks and positional traders/investors can wait for 15000. These levels will be stoploss as well. If on closing basis Nifty closes below then possibly I will sell short term or long-term position according. Resistance is at 15920 and if closes above this level, then expect further upside. I am not comfortable in buying any more stocks at the current price of Nifty will wait for some correction or will ride profits in the stocks that I have already. Also, I am expecting July to be volatile and we might see trending move in this month. So be ready for this and keep capital ready so that you can use it at the right time.

  • 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. If BankNifty closes below 34200, then expect some downside.


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:

  1. Nifty IT

Short-term traders can track this sector and the constituents chart.

Let's see some chart of Nifty 50 and BankNifty constituents.

  • Kotak Bank (daily chart):


Kotak Bank is trading near demand region (1670-1695). Currently, offering low risk buying opportunity to short-term traders.


  • Tech Mahindra (daily chart):


Tech Mahindra retesting previous resistance level or breakout level. Looking good for upside and offering low risk buying opportunity.


I do share few trades on Twitter/Telegram as well. You can follow us on Twitter and Telegram.


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 consolidating in a range for almost 1.5 months. One can expect volatile days ahead and also trending move on either direction, if any crucial level breaks.

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:

One more important update: SEBI clears IPO application of Zomato important. We have covered online food delivery business and also compared Zomato and Swiggy performance. Those who want can read this blog: Online Food Delivery Industry Analysis.

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.

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