Sunday, May 16, 2021

Amar (Voltas), Akbar (Ashoka Buildcon), Anthony (ITC) looking good on charts!

We have found three brothers who have given a bullish indication on the chart and looking good for more up moves. The market has shown a fall due to weakness in the American market. However, in the last two sessions, Dow Jones has shown recovery so our market can be shown strength.

Voltas: As per the chart, Voltas has given breakout with volume before results and results were then expectation good. Before breakout, it was in a bearish triangle and now Bullish Harami near trendline with volumes. So it is ready to fly till 1100 and below are the plus points.
  1. The company is almost debt-free
  2. ROE is good
  3. The company is on top in peer comparison
  4. Net profits are increasing


















ITC: It is also trading in bearish tringle and recently confirmed INHS. The trend change signal near support, there is a good entry point on dips. However, there is a small hurdle near 216-217, if crosses and closes above then good up moves expecting. Also, HUL & COLPAL doing well from the same sector so it will get sector support.

  1. ROE is around 25%
  2. The company is debt-free
  3. The company is on top based on market cap
  4. Results are increasing
















Ashoka Buildcon: The company getting good command in their field and becoming strong fundamentally day by day. On the weekly chart, the stock has given a U-turn signal and this signal is near the trendline. RSI is trading near the neutral zone and net profits have increased in the last two quarters. The promoter has increased their holdings in the last three years and it is more than 50%.


















I am bullish on all from current levels.

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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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Tuesday, May 11, 2021

Grave Stone Doji On Dow Jones!

Till the last weekend, our market was reacting to our news and sentiments. The market has started recovery from the bottom and today market has opened a gap down. The reason was the American market i.e. Dow Jones. It has fallen from the lifetime high and closed at day low. However, our market has shown recovery from the bottom and given closing in the green.

Nifty50 Analysis: In the below chart, nifty is trading in a channel and it is descending. On Monday, it has opened above the channel resistance and closed successfully. But we could not consider it as breakout because there was a neutral candle. After today's gap down, the market has tried to cross the resistance but not succeed. Again it has closed below channel resistance, but the plus point is that there is immediate support of 50 DMA.
Dow Jones: On Monday, it has made Grave Stone Doji and closed in the red. This is the reversal signal at a lifetime high and that's why we opened the gap down. That means the American market is overbought and now ready for a pullback. The pullback will drag down to our market. If we see the current candle, then the market has opened gap down and trading with a big red candle. I hope this pullback is enough because it has touched to 20 DMA i.e. support. Now we have to keep eyes on today's closing.

If our market opens with a big gap down, it will be a good opportunity for long stocks with good fundamentals. Friends, keep in mind entry point should be near support and that is important.

 

The global sentiments are negative, so be careful before taking any position.



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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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Sunday, May 2, 2021

Good Short Covering In Banks & Now Looking Bullish!

One month has been completed of this financial year and the market has shown too much volatility in this month. Banknifty touched to 30400 that was support as per weekly chart and now it has closed above resistance i.e. 30800. Now, this resistance will work like support but we have to wait for confirmation of up moves. If we talk about the Nifty then it has given breakdown to support before one week and now it is trading above this support.

Nifty 50: The support has broken in the last week but the candle was Doji and it is the indication of the neutral sentiments. So as per my view, it was not breakdown and nifty was recovered with COVID cases. The nifty has tried to break the trendline but not succeed. On a weekly chart, it has a closed with Inverted Hammer that is the signal of reversal.












As per swing trading, nifty is trading in a range and again ready to come down for 14300. If it will come down then there are chances it will make the third bottom. Also, this rally came near month-end so we can say it was short covering due to expiry. Now need a fresh signal for clear trend.












Nifty Bank: Here is the same scenario i.e. Inverted Hammer but plus point is it has closed above the resistance. So now this resistance will work as support and banks were recovered too much with the monthly expiry. Monthly option data is looking bullish but is it not worth. We need at least three days data to predict the monthly trend of the F&O script.












On the daily chart, banknifty has worked as per Cup & Handle and given target as well. It is looking bullish as per swing trading.













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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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Sunday, April 25, 2021

Will Banknifty Lead To Market? As Banks Are Ready For U-Turn!

In the last week, we have discussed Nifty as it was trading near support. Right now it has closed below the support, but we cannot consider it as a breakdown. The market was volatile and making green-red candles back to back. In this scenario it is difficult to predict, now it totally depends on COVID cases and death ratio. Let’s pray for all and take care of ourselves.

Nifty 50: Weekly trend is Lower Low & Lower High and index has closed below support. However, as per the candle chart there is Doji and it is the neutral sentiments so it is not breakdown. There are chances of recovery as many pharmaceutical companies are making medicines that are helpful against COVID. There is no change in the Nifty view as we have discussed in the last article.

Nifty Bank: On a weekly time frame, the index is trading near support and closed in the green in the last two weeks. It is giving a signal of a U-turn but we need confirmation so we can bullish on banks. Let’s go to the daily chart.













On a daily chart, the index has created Cup & Handle chart pattern and it is a signal of U-turn. We need confirmation that is a breakout, once the breakout will be done then banknifty will lead to the market. That means banking stocks will be a leader like HDFCBANK, SBI, and ICICI. This week having a monthly expiry week so we have to wait till the next series starting. If banks give any indication on chart and option data then we can long banks or banknifty.













I have cross-checked the chart of these three banks and each bank has made a bullish pattern on the daily chart as mentioned below.

HDFCBANK:- Cup & Handle

SBIN:- Double Bottom

ICICI:- Inverted Head & Shoulder



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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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Monday, April 19, 2021

Descending Triangle On Nifty Weekly Chart!

In the last year, we have seen a 40% fall in the market and the reason was COVID-19. After some time, bears got tired and bulls have taken handover. The market has recovered all fall in the 6-8 months and hit a lifetime high once again. Now many countries have vaccines, and India is also on this list. Still corona is getting heavy in the second wave, and there are chances to hit a lifetime high.

If we see a weekly chart of Nifty 50 then we can see a descending triangle. Based on COVID cases and Nifty chart pattern, there are chances of one more big fall. Let’s do a price history analysis.

Nifty50: On a weekly chart, the index is making Lower Highs back to back and taking support from the same levels. The Nifty has taken five times from the same levels. Today it has opened a gap down below this support, but we have three days for weekly closing. If the COVID situation is not get controlled and the chart breaks the support, we may see 13600/12500.

















Banknifty: After made a new lifetime high, it is showing a continuous fall. Before two weeks, it has broken support of 32500 and now taking support from 30500. The bank index is trading in the range of 30500 to 32500 and making Head & Shoulder pattern weekly chart.
















If we compare with the American market then those indexes are hitting lifetime highs. That means we are falling because of our crisis and we will recover with the same things. In this panic sentiment, we have to invest partially in good stocks. Stocks which having good fundamentals and chart levels. Friends always keep in mind when a big fall comes in the market, then big players invest at the bottom.



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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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Sunday, January 24, 2021

What Banknifty Chart Trying To Say?

Friends, everyone knows and seeing as the market hitting lifetime high back to back. The market has recovered all sell-off of lockdown and now showing strength for the long term. If we compare Nifty and Banknifty, then the bank index has taken too much time to cross its lifetime high i.e. 2+ months. That means all major banks are overbought and it is a time of profit booking. As per chart analysis, Banknifty has given bearish confirmation on a daily plus weekly time frame. Let’s see in dip analysis.

Technical Overview of Nifty: On the daily chart, nifty shows some zic-zac and this zic-zac means Double Top. In the last two days, nifty has shown a fall of 350 points and the next support is around 14300. There are two supports on a chart that is previous Higher-Low and 20 DMA. If it sustains and bounces from the same levels then there are chances of a fresh rally.

On a weekly chart, two Doji has formed i.e. neutral sentiments at a lifetime high, so rally or fall can come. Let’s hope for the best and prepare for the worst.


Technical Overview of Nifty Bank: Come to the banknifty chart, it has taken resistance from a lifetime high. On the last trading session banknifty has shown a fall of 1000 points. Also given breakdown confirmation of Double Top and broken down 20 DMA. As we discussed above banks are ready for profit booking and the index has given negative confirmation on the chart.


On the weekly chart, Evening Star near resistance. What is that mean? What index trying to say?




----------------------------------------------------------------------------------------------- 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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