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Home » Nifty hold above 200 DMA. Likely to take-off for 11000 mark. Weekly Nifty & Bank Nifty update along with Top Picks.
Equity Weekly Update Morning Nifty Update

Nifty hold above 200 DMA. Likely to take-off for 11000 mark. Weekly Nifty & Bank Nifty update along with Top Picks.

Weekly Nifty & Bank Nifty Update

 

Previous week Nifty price held above 200 DMA this indicates a positive move ahead. Technically, above 10630 prices may take off for 11000 levels.



The market extended the upward move for the straight third week amid positive domestic data, rupees gain, and potential COVID-19 vaccine. Still surge in coronavirus case capped the rally around 10600.

Since the last two-week, index price has been consolidating in a narrow range of 400 points. Although Index price held above 200 DMA, need a further buying or a strong bullish candle surpassing 10630 levels on the chart. Price has been trading in a “Higher-High and Lower-High ” which also a bullish pattern. Throughout the week market breadth has remained positive and FMCG, AUTO performed well followed by IT and financials. On the promise on COVID-19 vaccine global market turn positive.

 

Technical View on Nifty & Bank Nifty

 

Nifty 50

The price has surpassed 34 EMAs and is facing resistance to 50 EMAs on a weekly scale. On a daily chart, it has been trading above 200 DMA which further indicates bull dominance in the market ahead. Technically above 10300, it has a target of 11000. Immediate resistance lays down at 10630. Any closed above 10630 will fuel it for the next target of 10900-11000.



F&O Analysis

According to Open Interest Data, Maximum Call open interest stand at 11000 followed by 10600, and Put at 10400 followed by 10000 suggests a broad trading range for the index. PCR stands at 10500 validate it as an immediate support level.

Nifty future strategy for the week

Support 10200, Resistance 10630

Any panic above 10300 would be a buying opportunity with a stop loss of 10180 for the target of 10600-10900.

If index price unable to breach 10630 on a closing basis then we may expect a profit booking from higher levels.

Nifty future strategy for the day

Technical Chart of Nifty 50
Technical Chart of Nifty 50


Support 10560, Resistance 10630

Buy above 10630, for the target of 10690-10730, Else it may test 10560 on the downside.

Sell below 10560, for the target of 10560-10470, Else it may test 10630 on the upside.

 

 

Bank Nifty 

 

On the other hand, the financial benchmark index Bank Nifty had consolidated into a narrow range. Price failed to breach of its previous week’s high-low.

Technically, Price has been moving in a double bottom bullish price pattern which indicates a target of 26500 in upcoming trading sessions. Immediate resistance lay down at 22950. Trading above 22950 will lead it for 23900-25200-26500.

Bank Nifty future strategy for the week

Support 21000, Resistance 22500

Every dip is a buying opportunity with a stop loss of 20900 for a target of 22500-22900. Closing above 23000 will gear it for 23900-25200.

Bank Nifty Future strategy for the day

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty



Support at 21600 and Resistance at 22100.

Either side of the breakout will give the next 300-500 points in the respective direction.

 

Open Interest Data
Open Interest Data

 

Sector Update
Nifty MNC formed ascending triangle
Technical Chart of Nifty MNC
Technical Chart of Nifty MNC

 

After a strong bull run in the market, Nifty MNC looks bullish on the charts for the upcoming week. After the government’s decisions to unlock their countries, most of the MNC stocks back on the track. For the upcoming days, MNC stocks will touch new highs.

On the technical front, Nifty MNC formed an ascending triangle pattern on the daily chart and ready to break its hurdle level. Now resistance around 13300, break and close above 13300 will take it to 13600 and then to 13800 levels in days to come. Momentum indicator RSI also supports our positive view in this sector. Support around 12950, break and close below 12950 will negate our positive view in this sector.

Stocks to perform this week are:

Hindunilvr – Stock looks attractive on the daily chart. Traders can enter above 2200 for the upside rally till 2260 and then to 2300 levels in days to come. Support and stop loss below 2140 on a closing basis.

Cummins– Stock formed a bullish candle on the daily chart. Hurdle around 418, break and sustain above 418 will take it to 450 and then to 470 levels in days to come. Support and stop loss below 388 on a closing basis.

 

Top stocks recommendations for today (6th July 2020)

 

TRENT  (Cash)

Trent

Technical Chart of Trent
Technical Chart of Trent
 

After a short correction on the daily chart, the stock is trying to take reversal for the upside move. Traders can buy above 635 for the upside move till 665 and then to 610 levels in days to come.

Support and stop loss below 610.

 

APOLLO TYRE (Future)

Apollo Tyre

Technical Chart Of Apollo Tyre
Technical Chart Of Apollo Tyre
 

Catch Apollo Tyre above 115 as the stock looks positive on the weekly chart.

Traders can buy above 115 with a stop loss below 107 on a closing basis for an upside target of 125—128 levels in days to come.

 

MARUTI (Future)

 

Maruti

 

Technical Chart of Maruti
Technical Chart of Maruti

 

Stock is trading in a range on the weekly chart and looks positive above 6000 levels.

Traders can buy Maruti stock above 6000 with a stop loss below 5700 on a closing basis for an upside rally of 6500 +++ levels in the coming days.

Traders can trade safely with levels only. More will update on Nifty, Bank Nifty, and stocks specific during market hours.

 

Read our this week Chart Idea on Reliance (Click here)

 

 

Index

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