The benchmark index is expecting to give a dull opening on the Monday session. Despite a monthly gain of 7%, the Nifty price closed in red after six consecutive green weeks. August may be the best accumulation period. Read weekly update on same.
July series ends up by 7 %. August may be an accumulation month. The index is likely to trade in a range of 10800-10350 in upcoming months. Any correction till 10800 would be the best buying opportunity.
From the last couple of weeks, Bank Nifty traded weak as compare to Nifty Index . IT, Pharma, Auto, and Metal may lead the market for the further upside rally but be cautious in banking stocks at lower levels or near to support level.
Last week, Nifty 50 closed 1.08 percent lower as financial stocks underperformed. Heavyweight Reliance too corrected a little bit and in results, Nifty Index settled lower on a weekly basis.
Throughout the week we have seen a mixed trend. Pharma IT and ENERGY, PHARMA & INFRA scripts topped the market followed by REALTY, AUTO & METAL.ENERGY, FMCG, and MEDIA closed in the red.
In the coming week focus will be on earnings announcements AS
03/08/2020 – EXIDE,
04/08/2020 – PTC
05/08/2020 – CADILA, CANARA BANK,GODREJPROP
06/08/2020 – LUPIN, PIDILITE, TORRENT POWER
07/08/2020 – CIPLA, CONCOR, M&M, REC.
Needless to say, RBI Policy (6th August), global cues, and updates related to COVID-19 will also remain on the radar.
Weekly & Intraday Technical View on Nifty and Bank Nifty
Upcoming week Nifty 50 price may consolidate from 10850 on the downside to 11350 on the upside . 13 EMA stands at 11048 will play immediate support. Any closing below 11000 may extend its correction to 10915(21 EMA) and medium-term support will lie on 10850 marks where 200 EMA stands on a 60-minute chart. An index is likely to follow all the above-mentioned levels in the upcoming week.
Nifty Implied Volatility also consolidated for most of the week and closed marginally lower. PCR shifted its support to 11000. 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.
According to Open Interest Data, the Maximum Call open interest stand at 11200 followed by 11400 and Put at 11000 followed by 10800 suggests us a broad trading range for the index. PCR stands at 11000 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 11200
Either side of close will give the next 100-150 points in the respective direction.
Nifty future strategy for the day
Support at 11000, Resistance at 11150
Either side of the move will give the next 80-120 in the respective direction.
Financial index Bank Nifty closed down 4.51% at a weekly level. It’s a good time to accumulate banking stocks.
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 21500, Resistance 22800
Likely to consolidate in a range.
Bank Nifty Future strategy for the day
Support at 21300 and Resistance at 2180.
Buy above 21800, Target 22200-22500 OR Sell below 21300, Target 20900-20700.
Nifty MNC formed a bearish Doji
After a strong bull run in the market, Nifty MNC may correct in upcoming days. Global conditions too support weakness in this sector due to pandemic. We will expect some profit booking in this sector.
On the technical front, Nifty MNC formed two weak candles on the weekly chart and closed just above its support level. Now support 13450, break and close below 13450 will touch 13000 and then to 12800 levels in days to come. Momentum indicator RSI also supports our negative view in this sector on the daily chart. Hurdle around 13850, break and close above 13850 will negate our negative view in this sector.
Stocks to perform this week are:
GLAXO- Stock looks weak and formed weak candles on the chart in past trading sessions. Traders can short on the rise around 1470-1480 for downside target of 1400 and then to 1370 levels. Hurdle and stop-loss above 1550.
ASHOK LEYLAND- 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 50 for the downside move till 46.5 and then to 45 levels in days to come. Hurdle around 53.50, above 53.50 will negate our negative view in this stock.
Top Stocks Recommendations for tomorrow (3rd August 2020)
Catch it around 1300 levels. The stock looks positive on the weekly chart.
Traders can buy Bal Krishna Industries around 1300 with a stop loss below 1260 on a closing basis for an upside target of 1400 +++ levels in days to come.
JSW STEEL (Future)
Stock is in a positive trend and looks bullish on the weekly chart. Grab it above 222 levels.
Traders can buy JSW Steel above 222 with a stop loss below 212 on a closing basis for an upside rally of 235 +++ levels in the coming days.
Buy it above 91. Hurdle around 91, break above 91 will see non stop rally till 105 and then to 110 levels in days to come.
Support and stop loss below 78.
Grab this counter around 400 as it looks bullish on charts for upside move till 420 and then to 430 levels in days to come.
Support and stop loss below 380 on a closing basis.
Traders can trade safely in Nifty, Bank Nifty and Stock specific with given levels only. More will update during market hours.