Saturday, April 25, 2020

Nifty50 Trading In A Bullish Narrow Channel!

On 24th March, nifty has made a low of 7511.10 and currently, this level is bottom of the market. From the same level market has started to trade in a mild uptrend and it is continuing. The everyday market is opening gap-up or gap-down due to global sentiments. However, we are seeing good buying in large-cap stocks on every fall and that is the reason our market is sustaining. The last closing of the American and Singapore market is green so we can bullish on Monday.

Nifty50 Analysis: Last Monday, the market was open near the upper band of channel i.e. resistance and reacted the same. Nifty is trading in last week’s trend i.e. Higher-High & Higher-Low. Now the new thing is the channel is becoming narrow if we see the channel from start to till now then the trading range is getting small. In this scenario, chances are more for a breakout but we cannot take any risk due to global sentiments. We have to wait for breakout or breakdown then the trend will be confirmed. The last daily candle is confirmation of Grave Stone Doji.
The current weekly candle has given confirmation of spinning top i.e. neutral sentiments and it has not broken previous weeks low. That is the signal of the bullish trend ongoing.
Nifty Bank Analysis: The scenario in bank nifty is the same, but resistance at the horizontal level. The index has taken support from its 20 DMA and traded in a small range for the whole week. However, the trend is bullish as per the daily chart.
In the current week, the index has opened gap-up i.e. above the previous weeks high and closed below previous weekly closing. Banknifty has not broken pre weekly low, but current candle has covered the whole body of pre candle i.e. the confirmation of Bearish Engulf. So as per the weekly chart, we are bearish on banks but we have to wait for triangle break.

----------------------------------------------------------------------------------------------- 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.