Market analysis for next week
- Yash Mehta
- Jul 10, 2021
- 3 min read
In the last week's Market Analysis we have discussed that Nifty was trading in a tight range for few months now and one can expect volatility. Nifty touched 15900 and then went down 350 points after that in this week. Also IndiaVix was up by 13% on Thursday.
Nifty is down by -0.2% and BankNifty is flat and up by 0.8% in last week.
I had shared how I got 100% returns in TastyBite Eatable that was trading in five digits. No stock is expensive or cheap. If charts and fundamentals are good and risk reward is favourable, then focus should be on execution.
One can check the video and understand the rationale behind picking this stock.
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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 (34850-34500) and supply (35650-35800) zones. If supply breaks then possible resistance for BankNifty would be it's all-time high 37708. So as long as BankNifty doesn't close below 34200, BankNifty will be bullish. If BankNifty closes below 34850, then expect some downside.
BankNifty is just consolidating near its previous demand region. It might be getting ready for a big move now.
BankNifty took support near trendline support and there is a hammer formed near that line. If BankNifty closes below hammer low and trendline, then BankNifty will be weak. Currently hammer low is 34859 and support line is 35000.
No sectors are positive for short and long term. One should be little cautious towards market now and also if volatility increases then we can expect some sharp move. Keep stop losses intact for all the position and follow that diligently.
Let's see some chart of Nifty 50 and BankNifty constituents.
Reliance Ind (daily chart):
Reliance after breakout above supply zone is now retesting the demand zone (earlier it was supply). In this retest volumes were on lower side and this move is basically to remove weak hands from stock. Short-term traders can track this for upside till all-time high.
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. Zomato IPO will be out next week. 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.
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