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

Telegram: https://t.me/Intraday_King
 
YouTube: Click here
 
Website: http://money4me.in/services.html 

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

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.

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

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.

Telegram: https://t.me/Intraday_King
 
YouTube: Click here
 
Website: http://money4me.in/services.html 

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

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

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?

Telegram: https://t.me/Intraday_King
 
YouTube: Click here
 
Website: http://money4me.in/services.html 

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

Is It Right Time To Go With HFDC Life Insurance Ltd. ?

Today the market has fallen drastically due to second lockdown news in FRANCE, SPAIN, and ITALY. In this market storm, the stock price of HDFC Life Insurance has closed in green and at a day high. If we go through the last two days volume, so it is double the average volume. The stock is looking gorgeous as per Fundamental and Technical analysis.

Technical Overview (Weekly Chart): On a weekly chart picture is clear, the stock price has made a lifetime high around 650 and fallen from the same levels trice. However, if we see a sequence of falls and rise, then it is clearly showing 85% completion of Inverted Head and Shoulder. Right now the second shoulder is not completed, but it is indicating rally till lifetime high. Major bullish chart pattern on a large time frame, it is a good sign of long term.

Daily Chart: Now come to the small picture and price is trading in a down channel. It is trading below the 20 & 50 DMA and many times resisted from the same levels. Today price has crossed and closed above both DMA, and volume is good. If we see the line chart then the stock has made Double Bottom and now ready for a breakout. Once it breaks the previous Lower High, then the trend will change and there is one small hurdle around 610 between lifetime high.

Fundamentals:

The company is providing life insurance and due to COVID-19 demand has increased. The company is virtually debt-free and expecting good quarterly results. The return on equity is around 20%.

Telegram: https://t.me/Intraday_King
 
YouTube: Click here
 
Website: http://money4me.in/services.html 

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

Inverted H&S On Weekly Chart In SBI Bank!

Friends if we see and compare large-cap stocks then many have recovered after big fall except banking stocks. The simple way for cross verifying is Nifty and Banknifty, nifty is trading above its 200 MA and Banknifty still trading below or too far.

SBI Bank is one of the best domestic bank and having good fundamentals. Let's see a chart analysis of it.

Technical Overview of the monthly chart: In the month of March while COVID starting SBI has broken its important monthly support of 230. Next month It has to spend the whole time between 198 to 175 and then again a fresh fall from month May. Finally from June market has stopped to react on COVID news & crisis and at the same time, SBI bank has taken support from month support i.e. 150. Now next resistance is around 230 and stock is showing gradual positive strength.

 

Weekly chart: As on weekly chart Inverted H&S has formed, it is the strong signal of a trend change. We are waiting for a breakout confirmation with good volume. As per H&S, our target will be 250. In last to last week stock price has crossed the resistance but not closed above. Let's wait patiently or you can add some quantities before the breakout.

Daily chart: On smaller time frame stock is trading in a Bullish Ascending Triangle and on 12^th August stock has given breakout to a triangle with double volume. In last week the price has retested its trend line support plus 20 MA. Stock is continuously taking support from 20 MA and ready to touch 200 MA.

As per our studies stock is ready to fly and we are expecting 230/250 levels.

Telegram: https://t.me/Intraday_King
 
YouTube: Click here
 
Website: http://money4me.in/services.html 

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