Friends, we are seeing market volatility in election period from many years. As we wrote in our last article on Nifty and Bank Nifty before election results, as we predicted market has given a breakdown and complete their correction. If you have seen then you would get why we were told to avoid aggressive trading. INDIAVIX has touched their 52 weeks high and the market was hitting low on every day. We will see technical as well as options data analysis below.
Technical Overview of NIFTY: On 18th April 2019 Nifty has made new lifetime high i.e. 11856.15, but has not able to sustained and closed below previous lifetime high. Finally, the Nifty index has given a breakdown on 7th May 2019 and the market has started to fall. Fall continued to next 4 trading days, after than Nifty took support from the previous top i.e. 11100. On 16th May 2019 Nifty has made Bullish Harami Pattern on the chart and from next day market has started a new rally. Sunday, 19th May 2019 many survey companies flashed out their exit polls and market opened gap up 200 points. This was all history now we will discuss the present. If you remember the day of election results Nifty made again new lifetime high i.e. 12041.15 (Day high 12041.15 & Day low 11614.50, the range was 426.65 points) and profit booking came in the market. Last Friday market tried to break previous lifetime high but not succeeded. Nifty has made Double Top on the chart and now trading in the range i.e. 11760-12040. As per my technical view, the market is long term bullish but for next week in a given range. You can buy Nifty near support @11750 for the target of 12000.
Technical Overview of NIFTY BANK: In our last article, we caught Bank Nifty that time it was trading between two trend lines. In below chart index has given breakout to double top on 20th May 2019. Now again made double top near new lifetime high i.e. 31783. On last trading day, Bank Nifty made new high and same day touched to previous support i.e. 30600. Bank Nifty is also trading in the range i.e. 30600-31780. I will suggest staying away from Bank Nifty plus banking stocks till RBI policy declare (tentative date is 06th June 2019).
Options Data: If you analyze option chain (weekly + monthly expiry) of Nifty and Bank Nifty then data is showing clearly downtrend for next week. Fresh call writers are entered in the market. That’s why we are suggesting buy index on the dip.
Our last article stock gained by 15%.
Technical Overview of NIFTY: On 18th April 2019 Nifty has made new lifetime high i.e. 11856.15, but has not able to sustained and closed below previous lifetime high. Finally, the Nifty index has given a breakdown on 7th May 2019 and the market has started to fall. Fall continued to next 4 trading days, after than Nifty took support from the previous top i.e. 11100. On 16th May 2019 Nifty has made Bullish Harami Pattern on the chart and from next day market has started a new rally. Sunday, 19th May 2019 many survey companies flashed out their exit polls and market opened gap up 200 points. This was all history now we will discuss the present. If you remember the day of election results Nifty made again new lifetime high i.e. 12041.15 (Day high 12041.15 & Day low 11614.50, the range was 426.65 points) and profit booking came in the market. Last Friday market tried to break previous lifetime high but not succeeded. Nifty has made Double Top on the chart and now trading in the range i.e. 11760-12040. As per my technical view, the market is long term bullish but for next week in a given range. You can buy Nifty near support @11750 for the target of 12000.
Technical Overview of NIFTY BANK: In our last article, we caught Bank Nifty that time it was trading between two trend lines. In below chart index has given breakout to double top on 20th May 2019. Now again made double top near new lifetime high i.e. 31783. On last trading day, Bank Nifty made new high and same day touched to previous support i.e. 30600. Bank Nifty is also trading in the range i.e. 30600-31780. I will suggest staying away from Bank Nifty plus banking stocks till RBI policy declare (tentative date is 06th June 2019).
Options Data: If you analyze option chain (weekly + monthly expiry) of Nifty and Bank Nifty then data is showing clearly downtrend for next week. Fresh call writers are entered in the market. That’s why we are suggesting buy index on the dip.
Our last article stock gained by 15%.
WhatsApp Intraday Calls: https://chat.whatsapp.com/E2phy1bUjp5DjDXzUhnUy2
Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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