Morning Mantra - 16th August 2023

15 thg 8, 2023

Dear All,

So once again we had witnessed the significance of 19300 level on Monday itself. As after making a low of around 19257 during the day, the Index ultimately gave us a positive closing of around 19434.

Well now we can observe a bullish reversal pattern, named as Hammer, on the Day chart setup of Nifty. So, we are now expecting a bounce back from the current levels. Whereafter, if Nifty takes a support at this level and manages to gives a positive closing of above 19550, then we will be in an aggressive buying mode.

Otherwise, until then, we will have to wait and watch for either a breakout of above 19550, or a breakdown below 19300 on closing basis.

In the meanwhile, it will be better to keep Rebalancing the Portfolio.

Besides, as per the chart of BankNifty, we can now observe the perfect formation of a Doji Pattern.

For which, just like we always say -
“A Doji Formation on the chart and a Fauji (soldier) on the Border is quite indicative of a safer zone for the Bulls”. So, as of now there’s a symbol of Reversal on the chart of BankNifty as well.

However, here again it will be better to wait for an either side movement, i.e., a breakout of above 44444 and a breakdown of below 43800 on closing basis.

Keep Trading!
Keep Investing!

Regards,
Alok Daiya
SEBI Registered Research Analyst