Morning Star On Daily Chart Of Nifty 50!

If we see global clues then China is covering from CORONA or we can say they have recovered. The virus is spreading rapidly in each country and Italy having the worst condition. We have fewer cases in our country but that doesn’t mean we have to be careless. There is no medicine on this virus but we can control it by taking precautions. For that everyone has to take responsibility and have to do an action.

Let’s see the impacts of these global clues on our market and precautions for investment.

Nifty 50 Analysis: On the monthly chart, nifty has taken support from 7900 i.e. Higher Low of 2016. From the last two weeks, the market has fallen down and DIIs buying on every dip. As per the RSI indicator, nifty is oversold on a daily, weekly, and monthly time frame. Still, we have to wait till this month's end, once CORONA will come in control then the market will show bounce.

 
On the daily chart, nifty has made Spinning Top near-monthly support and the next day it has closed with a good green candle. If we combine the last 3 candles then it is Morning Star pattern and it is near support. However, there are back to back resistance as you can see in the below daily chart. So this is not enough for a trend change, we need confirmation on a weekly or monthly chart.

Nifty Bank Analysis: As per the monthly chart, the banking sector has broken down all supports and now given closing near-monthly support i.e. around 20300. There are many banking stocks are ready to show two-digit value like “Yes Bank”. The reason is when the market has shown a fall that time banking stocks have majorly participated. That is the reason we have to be cautious while investing in banking stocks.

On a daily time frame, the index has made two Spinning Tops in the last two trading sessions. Here is the same situation that needs confirmation on a large time frame.

Total sentiments are negative in all global markets, so be careful before investing in the long term.

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----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. 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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