Sunday, May 30, 2021

Is Nifty50 Ready To Break Lifetime High?

Before two weeks nifty has confirmed Bullish Triangle breakout with a gap-up opening. Then retested to triangle support and shown fresh rally. Right now nifty is trading at a lifetime high i.e. reacting like resistance. If we compare Nifty & Niftybank in the last two trading sessions then nifty has shown good strength. The reason was Reliance Industries has gained by 7% and dragged to Nifty till highs. What next?

Let’s see Nifty top gainers of Friday, in the below picture we can see RELIANCE, HDFCBANK, & KOTAK BANK were in top gainers. These are the heavy weightage stocks in the index and now they can help to make new lifetime highs in the coming weeks.

Nifty 50: After triangle breakout, nifty has tested support and then traveled towards lifetime high. As per candle type, nifty went up very gradually and the last candle is Doji i.e. near the resistance of lifetime high. For swing need breakout for more up moves otherwise have to wait for correction till the support. The strong support is around 15300 and resistance 15500 as per chart as well as options data. We are bullish on Nifty for the coming week.

Nifty Bank: In the last series banknifty has given back-to-back confirmation of Cup & Handle then Double Bottom and worked well accordingly. However, right now it is trading near resistance and far from the lifetime high. If we see a line chart then breakout is not done and it is sustaining below the resistance. The same strategy here long on a breakout or buy on dips, support is at 34000 and resistance is around 36000.


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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