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Home » Despite Friday’s recovery, Nifty 50 has a negative bias. Weekly levels of Nifty, Bank Nifty along with Top Picks.
Equity Weekly Update Morning Nifty Update

Despite Friday’s recovery, Nifty 50 has a negative bias. Weekly levels of Nifty, Bank Nifty along with Top Picks.

Nifty Bulls and Bears

 

The NSE Nifty gave a relief rally in the last hour on Friday, yet its move to the 8900—8700 levels cannot be ruled out until Nifty 50 able to close above 9350 levels. Bank Nifty too has a high chance to take further dip in coming week.

 

Focused on introducing structural reforms was the headline of four tranches.

On Saturday, FM Minister tabled the fourth tranche of 20 Lacks crore fiscal package and try to design a platform that helps to achieve the goal of Atmanirbhar Bharat. The government is betting on eight sectors in the fourth tranche to revive economic sentiments — Coal, Minerals, Defence, Civil aviation, Power distribution companies in UTs, space, and atomic energy. This sector may hold positive sentiments for some time being.

 

Technical View

 

Nifty 50

After attempting a false breakout of rising wedge Nifty price formed a bearish gap on May 4, Still giving respect to 9420 as immediate resistance. On Friday, Nifty closed at 9136 with a 1.24 % loss on a weekly basis. Price formed a bearish candle on the weekly chart for a straight second week which indicates an extension of downtrend further. Price is likely to extend its downtrend below 9200.

Market breadth has remained negative throughout the week. We have a bearish view on the index until and unless it gives a close above 9350.

F&O Analysis 

According to Open Interest Data, the Maximum Call open interest stand at 9500 followed by 10000, and Put at 9000 followed by 8500 suggests a broad trading range for the index. PCR stands at 9000 validate it as a strong support level.

Nifty (future) strategy for the week

Nifty 50 Technical Chart
Technical Chart of Nifty 50

 

Support 9000, Resistance 9350

Trading below 9000 may extend its downside move for the target of 8850—8700.

On the other side, holding above 9350 it will head higher to test the bearish gap (9,530—9,750 )

Nifty (future) strategy for the day

Support at 9000 while Resistance is at 9200

Trading below 9000 prices may slide for 8920—8850 on the downside, else it may test above 9200 again.

Break and sustain above 9200 will take it to 9280—9350.

 

 Bank Nifty

On the other hand, Financial benchmark Bank Nifty lost approx 2.5% of its value and facing a resistance above 20000—20200.

Following global weak sentiments, If Index breached down below 18000 levels then we may see 2000—3000 points downside move.

On the flip side, holding above 20200 may extend the same rally for 2000—3000 points on the upside.

Bank Nifty (future) strategy for the week

Nifty Bank Technical Chart
Technical Chart of Bank Nifty

 

Support 18000, Resistance 19500

Sell below 18000 (If close) for the target of 16500—14000.

Or

Buy above 19500 for an upside target of 21500—22500.

 

Bank Nifty (future) strategy for the day

Support at 18500 and Resistance at 19300

Either side of the breakout will give 500—800 points in the respective direction.

 

Open Interest Data
Open Interest Data

 

Sector Update

 

Nifty Media is facing a tough time in this pandemic
Nifty Media Technical Chart
Technical Chart of Nifty Media

 

Since the outbreak of the Covid-19 pandemic, millions of the livelihood is at risk as all major national events are postponed or canceled.

The media sector faces a major cash crunch as many advertising categories have either stopped or deferred their campaigns. The biggest issue in the upcoming months for the media industry is going to be cash flows.

On the technical front, Nifty media looks extremely weak on the chart. Momentum indicator RSI too supports our negative view in this sector. Now support at 1100, break and weekly close below 1100 will see sharp downside fall till 1000 and then to 900 levels in days to come. Hurdle at 1205, break and close above 1205 will negate our negative view in this sector.

SUNTV- Stock looks weak and formed weak candles on the chart in past trading sessions.

Support at 380, break and sustain below 380 will touch 360 and then to 350 levels in days to come. Hurdle and stop-loss above 400.

INOX LEISURE- Stock looks extremely weak on the weekly chart and continuously falls since this pandemic started. Now we will expect it to touch new lows in upcoming sessions.

Traders can go for short in this stock on the rise around 198—200 for the downside move till 185 and then to 180 levels in days to come. A hurdle is at 210, our negative view in this stock above the resistance level.

 

Top Stock Recommendations

 

ADANI PORT (Future)

Adani Port

Adani Port Technical chart
Adani Port Technical chart
 

Grab it above 312 as the stock has formed a bullish flag pattern and looks positive on the chart.
Traders can buy above 312 with a stop loss below 305 levels on a closing basis for an upside target of 320 +++ levels in days to come.

 

PETRONET (Future)

Petronet

Petronet Technical chart
Petronet Technical chart
 

The stock has formed a double top pattern and looks weak on the chart from upper levels. Sell it below 224.

Traders can sell bellow 224 with a stop loss above 230 levels on a closing basis for a downside target of 218—215 levels in the coming days.

Trade safely with given levels and stop loss. More will update during market hours on WhatsApp and on Telegram Channel.

 

Read our this week chart idea on RBL BANK (Click here)

 

 

Index

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