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Home » Weekly Index Update – Despite a bull momentum, Nifty 50 needs to cross the resistance level of 11350 for the fresh upside rally.
Equity Weekly Update Morning Nifty Update

Weekly Index Update – Despite a bull momentum, Nifty 50 needs to cross the resistance level of 11350 for the fresh upside rally.

 

Index price held its upside momentum throughout the week. For the straight third week, Nifty 50 managed to hold above 11000 levels. Technically, the rally is likely to test 11350. We need a strong buying signal for aggressive buying. 11000 and 10850 will act as a strong support zone, while resistance will come at 11350.

 

After robust growth in the July series, Index continued its buying momentum and ended the first week with a marginal gain. We already mentioned in our last report that August may be an accumulation month and as per expectation index price has consolidated in a narrow range of 340 points in the first week of August series. For the upcoming week, we stand on our previous week’s outlook.

The index is likely to trade in a range of 10800—11350 in the upcoming months. Any panic till 11000 would be the best buying opportunity. Any fortunate closing above 11350 will fuel it for the upside targets.

Last week Nifty 50 closed 1.27 percent higher, weighed by large caps. Major all indices ended in the green. AUTO, METAL, FMCG &PHARMA scripts topped the market followed by IT, MEDIA ENERGY.

In the coming week focus will be on earnings announcements;-

10th August – MUTHOOTFIN, TITAN, UJJIVAN

11th August- MOTHERSONSUMI, PTC INDIA

12th August- BHARAT FORG, CHOLAMANDALAM, CUMMINS, NCC, TATA POWER

13th August- GAIL, GODREJ IND, GRASIM, HEROMOTOCO

14th August- BERGER PAINT, GLENMARK, HINDALCO, NTPC, VOLTAS ETC

Needless to say, IIP ( 11th August), CPI ( 12th August), WPI (14th August) global cues, and updates related to COVID-19 will remain on the radar.

 

Weekly & Intraday Technical View on Nifty and Bank Nifty

 

Nifty

The candle formed a hammer pattern on the weekly chart with a marginal gain. Despite a bull candle, we need a strong close above the prevailing range for aggressive buying.

In the upcoming week, Nifty 50 prices may be consolidated from 10900 on the downside to 11350 on the upside. The 13 EMA stands at 11140 will play immediate support. Any closing below 11140 may extend its correction to 11990(21 EMA) and medium-term support will lie on 10950 marks where 200 EMA stands on a 60-minute chart.

Nifty Implied Volatility also consolidated for most of the week and closed marginally lower. PCR shifted its support to 11100. Lower NIFTY IV and Higher PCR indicate supports for the market.

Technically, Index price has been trading in a range of 300 points from 11040-11350, either side f move will give the next 200-250 points in the respective direction.
Trend: Support lays down at 11000, Closing below 11000 may extend its down move to 10920-10850. Above 11000 is may test 11200-11340. Closing above 11340, will target for 11420-11510.

 

F&O Analysis

 

According to Open Interest Data, Maximum Put open interest stand at 11000 followed by 11100, and Call at 11500 followed by 11300 suggests a narrow trading range for the index. PCR stands at 11100 validate it as an immediate support level. Writing in call and put both options indicates an indecisive move ahead.

Nifty future strategy for the week

Support 11000, Resistance 11260

Either side of close will give the next 100-150 points in the respective direction.

Nifty future strategy for the day

Technical Chart of Nifty
Technical Chart of Nifty



Support 11140, Resistance 11260.

Either side of the move will give the next 80-120 in the respective direction.

 

Bank Nifty



Financial index Bank Nifty ended marginally higher on a weekly scale. Price recovered with Double Bottom price pattern on the weekly chart suggests a target of 25000-26500. The financial index is likely to outperform next week.

 

Technical View

 

Price has recovered with the “Double Bottom” bullish price pattern on a daily scale, which indicates a target of 26500 in upcoming trading sessions. Immediate resistance lay down at 23200. Trading above 23200 will lead it for 23700-24500-25200; else it may test 21000 marks. Trading below 21000 may correct it further for 20800-19500.

Bank Nifty future strategy for the week

Support 21000, Resistance 22000

Buy above 22000, Target 22800-23200, Else may test 21000 on the downside

Bank Nifty future strategy for the day

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty

 

Support at 21300 and Resistance at 2180

Buy above 21800, Target 22300-22700, Else may test 21000 on the downside.

 

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Nifty
Open Interest Data

 

 

Sector Update

 

Nifty FMCG is ready to lead from the front

 

Technical Chart of Nifty FMCG
Technical Chart of Nifty FMCG

 

After a short correction, Nifty FMCG is ready for the fresh breakout on the charts. Factors such as the unlock process, increase in demand, and improvement in economic activity will support this sector to outperform. For the upcoming days, Nifty FMCG will lead the market.

On the technical front, Nifty FMCG looks attractive on the charts and ready for the fresh breakout. Major hurdle around 31700, break and sustain above 31700 will take it to 32500 and then to 33000 levels in days to come. Momentum indicator RSI too supports our positive view in this sector. Support around 30500, break and close below 30500 will negate our positive view in this sector.

Stocks to perform this week are:

McDowell – Stock is ready to take reversal from lower levels. Hurdle around 594, break and close above 594 will take it to 620 and then to 640 levels in days to come. Support and stop loss below 570 on a closing basis.

Emami Ltd – Stock looks attractive on the daily chart. Traders can enter around 250 for the upside rally till 275 and then to 290 levels in days to come. Support and stop loss below 230 on a closing basis.

 

Top Stocks Recommendations for tomorrow (10th August 2020)

 

BAJAJ FINANCE (Future)

 

Bajaj Finance

Technical Chart of Bajaj Finance
Technical Chart of Bajaj Finance
 

Grab Bajaj Finance above 3510 levels as the stock looks positive on the weekly chart.

Traders can buy above 3510 with a stop loss below 3300 on a closing basis for an upside target of 3750—3800 levels in days to come.

 

PNB (Future)

 

PNB

Technical Chart of PNB
Technical Chart of PNB
 

PNB is on the verge of reversal and looks bullish above 33.65 on the weekly chart.

Traders can buy above 33.65 with a stop loss below 31.30 on a closing basis for an upside rally of 38 +++ levels in the coming days.

 

NAM-INDIA (Cash)

 

NAM-INDIA

Technical Chart of Nam India
Technical Chart of Nam India

 

Catch it around 270 as stock is taking support at lower levels. We will expect it to touch 290 and then to 310 levels.

Support and stop loss below 250 on a closing basis.

 

ORIENTCEM (Cash)

 

ORIENTCEM

Technical Chart of Orient Cement
Technical Chart of ORIENTCEM
 

Grab it around 69-68 as stock formed a bullish pattern in the past session. We will expect an upside move till 76 and then to 80 levels in days to come.

Support and stop loss below 62.

Traders can trade safely with given levels only. More will update during market hours.

 

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