Market analysis for next week
- The Shareholder
- Jul 24, 2021
- 3 min read
In the last week's Market Analysis we have discussed that Nifty has given breakout above all-time high but unfortunately that was a fake breakout and Nifty went down and touched support line (15600) this week itself. This support was discussed in the blog. I have updated about buying stocks for short term on twitter and telegram when market was trying to take support in this dip.
Nifty is down by 0.4% and BankNifty is flat and down by 2.0 in last week.
I had shared one largecap stock video in last week. It is giving opportunity to traders and investors. Stock has given breakout now completing its retest.
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.
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 was trading in range (15630 - 15915) for one month. Recently, Nifty has given breakout above resistance 15915 and it turned out to be a fake breakout. Support was at 15630 and Nifty during that dip didn't close below 15630. So closing basis stoploss helps sometimes. Now again Nifty entered in the same range (15630 - 15915). One should wait for breakout or breakdown and then take action on their portfolio or take new positions.
BankNifty
Daily time frame chart:
BankNifty has same story as that of Nifty. It has given a fake breakout above supply zone and then it went down. Currently, BankNifty had given fake breakdown as well but it took support and closed above support line. Short term traders can use this opportunity as the risk at current price is less. Banking stocks can be tracked or even BankBees. Target can be supply zone. If BankNifty closes below 34350 then we can expect it to go down in short term.
Some sectors that are looking good for short term and positional trades are:
Nifty Realty
Let's see some chart of Nifty 50 and BankNifty constituents.
Kotak Bank (daily chart):
Kotak bank is trading near demand region and giving opportunity to traders and investors to accumulate. Stoploss would be 1660 on closing basis.
Disclaimer: 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:
Nifty and BankNifty have entered in their previous old range after fake breakout. Market seems to be rangebound. BankNifty has taken support at support line and giving decent opportunity to traders and investors.
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.
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Good one yash