Market analysis for next week
- The Shareholder
- Jul 31, 2021
- 3 min read
In the last week's Market Analysis we have discussed that Nifty has entered back into its boring consolidation region of 15600-16000. This week itself Nifty went near 15900 and corrected below 15600 but didn't close below that and it has touched 15850 again. This week was volatile, with a lot of movement on either side. Also, BankNifty was taking support near trendline.
Nifty is flat and down by 0.1% and BankNifty is down by 0.31% during this week.
I had shared one largecap new age technology company TechnoFunda video in this week. It is giving opportunity to traders and investors.
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 is trading in between this supply zone (15900-15950) and demand zone (15450-15580) for a month now. A trader can use this consolidation phase to add stocks when Nifty is in demand zone and sell stocks at supply zone. If Nifty breaks and closes below demand zone then we can expect some dips in the market. If Nifty breaks and closes above supply zone, then we can expect upside rally again. Trader should watch for breakout/breakdown beyond these zones.
Note: There can be fake close also as we have seen in last week.
BankNifty
Daily time frame chart:
BankNifty has the same story as that of Nifty. It is also stuck in between this demand zone (33900-34100) and supply zone (35800-36000). A trader can use this consolidation phase to add stocks when BankNifty is in demand zone and sell stocks at supply zone. If BankNifty breaks and closes below demand zone, then we can expect some dips in the market. If BankNifty breaks and closes above supply zone, then we can expect upside rally again. Trader should watch for breakout/breakdown beyond these zones.
Note: There can be fake close also as we have seen in last week.
Some sectors that are looking good for short term and positional trades are:
Nifty Metal: I have shared about buying metal stocks on Twitter when majority of the stocks were taking support at crucial levels. Link of the post: Metal Post
Let's see some chart of Nifty 50 and BankNifty constituents.
Hindalco (daily chart):
Hindalco has given breakout after consolidating for two months. It is a rounded bottom breakout. Short Term and Momentum traders can track this stock for buy on dips opportunity. Stoploss would be 388.
JSW Steel (daily chart):
JSW Steel has given breakout after consolidating for more than two months. Similar setup as that of Hindalco, It is a rounded bottom breakout. Short Term and Momentum traders can track this stock for buy on dips opportunity. Stoploss would be 698.
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 are consolidating in between supply and demand zone. Breakout / Breakdown above or below this will give decent one sided move.
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