After the consolidation of four days, Nifty 50 is ready to move for 11400 levels in the coming week. Throughout the week nifty held its bull bias. Any closing above 11250 will lead it for 11400, else it may test 11040-10980. Read detailed weekly levels of Nifty and Bank Nifty.
Despite the consolidation of the last four trading sessions, the price has been gradually going higher. Nifty has traded in a narrow range of 280 points throughout a week; The Index price extended the upward move for the straight sixth week.
Last week Nifty 50 closed 2.68 percent higher, weighed by heavyweights. Financial benchmarked performed well. Throughout the week market breadth has remained positive and ENERGY, PHARMA & INFRA scripts topped the market followed by AUTO, METAL & MEDIA.
In the coming week focus will be on earnings announcements as
27/07/2020- ESCORTS, HAVELLS, KOTAKMAHINDRABANK:
28/07/2020- CASTROL, IDBI BANK, HEXAWARE, NIITECH, NESTLE, RBLBANK;
29/07/2020- CEAT COLPAL, DRREDY, MARUTI, GLAXISMITHLINE;
30/07/2020- DABUR, HDFC;
Needless to say, global cues and updates related to COVID-19 will also remain on their radar.
Weekly & Intraday Technical View on Nifty and Bank Nifty
Last week, Nifty managed to hold above 11000 with higher open interest (Addition more than 7%), indicates buying position in the market. Nifty Implied Volatility also consolidated for most of the week and closed marginally higher. PCR shifted its support to 11000. Lower NIFTY IV and Higher PCR indicate supports for the market.
FII injected 7788 crores in the Indian market, likely to give positive bias although there is a short position in the derivative segment that gives a cautious view also.
Technically, Index price has been trading in a range of 300 points from 11980-11250, either side f move will give the next 200-250 points in the respective direction.
Trend: On a daily chart, it has been trading above all the major averages, which further indicates bull dominance in the market ahead.
Technically above 10250, it has a target of 11400-11550. Immediate resistance lays down at 11250. Any closed above 11250 will fuel it for the next target of 11400-11520.
According to Open Interest Data, Maximum Call open interest stand at 11500 followed by 11200, and Put at 11000 followed by 10800 suggests a broad trading range for the index. PCR stands at 11000 validate it as an immediate support level.
Nifty future strategy for the week
Support 11000, Resistance 11250.
Either side of close will give the next 200-250 points in the respective direction.
Nifty Future strategy for the day
Support at 11080 and Resistance at 11240. Either side of the move will give the next 80-120 in the respective direction.
Financial index Bank Nifty closed 3.17% higher at a weekly level. Price recovered with Double Bottom price pattern on the weekly chart suggests a target of 25000-26500.
Technical- Index price has taken a resistance of 23200 throughout the week and support around 22000. Any panic is a buying opportunity with a stop loss of 21000 for the above-mentioned targets.
Trend: 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 at 22000 while Resistance at 23200. Either side of the breakout will give the next 500-700 points in the respective direction.
Bank Nifty Future strategy for the day
Support at 22400 and Resistance at 23200.
Catch it, Above 23200 for the next 300-500 points, else it may test 22700-22400 on the downside.
Nifty Metals may lose its shine
The metal sector will remain under pressure until the trade war between the world’s two largest economies finished. Investors fear the trade war is undermining economic growth and metals usage. China is the world’s top consumer of industrial metals, and higher prices there could damage demand.
On the technical front, Nifty Metals formed a bearish hammer on the weekly chart. We will expect it to fall sharply below its support level. Momentum indicator RSI too supports our bearish view in this sector. Support around 2070, break and close below 2070 will see a downside move till 2000 and then to 1950 levels. Hurdle around 2170, break and sustain above 2170 will see a fresh breakout for the upside move in this sector.
Stock to perform this weak are:
Jindal Steel – Stock formed a weak candle on the weekly chart. We will expect a negative move below its support level. Support around 165, below 165 we will expect it to touch 155 and then to 150 levels in days to come. Hurdle around 182, close above 182 will see fresh upside move in this stock.
NMDC – Stock formed a bearish candle on the weekly chart. Traders can go for short below 84 for a downside target of 80 and then to 77 levels. Hurdle and stop-loss above 88 on a closing basis.
Top Stocks Recommendations for tomorrow (27th July 2020)
Catch Marico above 363 levels. The stock is trading in a range and looks positive on the weekly chart.
Traders can buy above 363 with a stop loss below 347 on a closing basis for an upside target of 380 +++ levels in days to come.
The stock looks weak below 580 levels on the weekly chart.
Traders can sell Grasim below 580 with a stop loss above 600 on a closing basis for a downside rally of 560—550 levels in the coming days.
APL APOLLO (Cash)
Buy it above 1880. Hurdle around 1880, break above 1880 will see non stop rally till 1960 and then to 2000 levels in days to come.
Support and stop loss below 1800.
AARTI IND (Cash)
Catch it above 960 for the sharp upside move till 1020 and then to 1050 levels in days to come.
Support and stop loss below 900 on a closing basis.
Traders can trade safely in Nifty, Bank Nifty, and Stock specific with levels only. More will update during market hours on our WhatsApp and Telegram channel.