Sunday, October 10, 2021

Cup & Handle Breakout In Nifty, Is It Bullish?

Friends, our market has shown good recovery in the last week and the reason was the American market recovery. The American market i.e. Dow Jones is trading in a range from the last 2-3 months and changing trends in a week or two weeks. However, on a daily chart, it has completed Double Bottom and now needs breakout for more up moves towards lifetime high. It will be sentimentally good for our market. Let's focus on our market’s strength.

From the last 2 two months, Nifty has given one way up moves and there were very small pullbacks. That means there were only bulls in the market, every dip was showing buying. No one is ready to sell their large-cap stocks but recently nifty has shown some good corrections. In the last trading session, Nifty has confirmed Cup & Handle. However, we have to wait for a breakout to lifetime high for a fresh rally. There are important supports are around 17600/17500 and resistance is around 18000. Our nifty view is buy in dips for the coming week.

Let's come to the banking sector i.e. Banknifty, as per the fundamental PSU banks are looking good bullish on charts. But bank leaders are from private sector banks so there are fewer chances of a rally. In the last month, bank nifty has made new high and 37300/37500 became support. As per the chart, bank nifty is taking rest and making Higher Lows continuously. Also, it is taking support from 20 DMA and we are not much bullish on bank nifty. We will wait for a breakout to 38500 for more up moves towards 39000/40000.



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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