NIFTY ANALYSIS AND WEEKLY PICKS
NIFTY ON 06-08-2022
NIFTY traded in a limited range of 17350-17500 as levels at both the ends were respected by the market forces. Among major indices BANK and IT continued to support the Index with a gain of 0.44% and 0.64% respectively while AUTO and METAL lost 1.09% and 0.44% respectively.
NIFTY finally closed at 17397.50 with a marginal gain of 0.09%.
Technical View : (Daily Chart)
NIFTY has made a Doji candle which generally indicates the trend reversal.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short-term trend is in the positive territory.
RSI is above 70 level (75.92) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17350-17225 will work as the support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17441 to17492 which is intact.
View for Traders:
As we have been discussing that there are high chances of correction in Index since last three posts the formation of Doji on Daily chart is further strengthening the probability of a correction.
In my view this one-way rally is paused as of now giving Index the status of Buy on Dips. Now the question is at what levels one should create positions Positionally as well as on Intraday basis.
First let’s discuss for the Positional players. As there are high chances that Index may be corrected from current levels so in my view 16950 may be the most suitable level to create a position for optimum return.
Now we come to the Intraday players. For tomorrow Buying at the second support level i.e. 17225 with a SL of below 17150 on closing basis may be the most appropriate option. The target may be 17300 and 17325 . Once the target is achieved the trade could continue with Trailing Stop Loss.
The sellers must take a chance in the range of 17350-400 with a SL of above 17450 on closing basis. The target will be 17250-17225. Once the target is achieved the trade could continue with Trailing Stop Loss.
Sectoral View:
On weekly charts IT seems strong and this could be the sector where investors may like to invest their hard-earned money during the week.
WEEKLY PICKS:
Infosys
Buy in the range of 1635-1640
Target 1752
SL 1580
Upside potential 7%
Duration 2 Weeks
3M India
Buy in the range of 24050-24136
Target 25971
SL 23470
Potential Upside 7.98%
Duration 2 weeks
Torrent Power
Buy in the range of 546-548
Target 580
SL 539
Potential Upside 6.22%
Duration 2 weeks
NIFTY traded in a limited range of 17350-17500 as levels at both the ends were respected by the market forces. Among major indices BANK and IT continued to support the Index with a gain of 0.44% and 0.64% respectively while AUTO and METAL lost 1.09% and 0.44% respectively.
NIFTY finally closed at 17397.50 with a marginal gain of 0.09%.
Technical View : (Daily Chart)
NIFTY has made a Doji candle which generally indicates the trend reversal.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short-term trend is in the positive territory.
RSI is above 70 level (75.92) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17350-17225 will work as the support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17441 to17492 which is intact.
View for Traders:
As we have been discussing that there are high chances of correction in Index since last three posts the formation of Doji on Daily chart is further strengthening the probability of a correction.
In my view this one-way rally is paused as of now giving Index the status of Buy on Dips. Now the question is at what levels one should create positions Positionally as well as on Intraday basis.
First let’s discuss for the Positional players. As there are high chances that Index may be corrected from current levels so in my view 16950 may be the most suitable level to create a position for optimum return.
Now we come to the Intraday players. For tomorrow Buying at the second support level i.e. 17225 with a SL of below 17150 on closing basis may be the most appropriate option. The target may be 17300 and 17325 . Once the target is achieved the trade could continue with Trailing Stop Loss.
The sellers must take a chance in the range of 17350-400 with a SL of above 17450 on closing basis. The target will be 17250-17225. Once the target is achieved the trade could continue with Trailing Stop Loss.
Sectoral View:
On weekly charts IT seems strong and this could be the sector where investors may like to invest their hard-earned money during the week.
WEEKLY PICKS:
Infosys
Buy in the range of 1635-1640
Target 1752
SL 1580
Upside potential 7%
Duration 2 Weeks
3M India
Buy in the range of 24050-24136
Target 25971
SL 23470
Potential Upside 7.98%
Duration 2 weeks
Torrent Power
Buy in the range of 546-548
Target 580
SL 539
Potential Upside 6.22%
Duration 2 weeks
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