Last week markets remained under pressure due to Covid – 19 second wave hits most of the states in India and across the Globe. Covid -19 restrictions and fear of lock down resulted in the market movements and stocks like PVR, IRCTC are fallen sharply. In addition to the Covid-19 the rising Bond yield in the US markets also contributed in the selling pressure from foreign portfolio investors. Last week the US dollar also broke the psychological crucial resistance of 92.5.
Nifty Overview
Last week nifty open at 14736 and made a high of 14878 (resistance zone) and touched a low of 14264 (Gap Support) filled the gap created on budget day & closed at 14507 levels still lower by 1.61%.
Let’s have a look at Nifty Technical Chart as above, you can see that nifty filled the gap at 14264 levels, the gap was created after budget day and we can expect some bounce back in nifty. The important first level of resistance is marked on the daily chart as above which comes in the zone of 14650 to 14680 levels. Once these levels are crossed we can again expect some upward movement towards 14860-14880 (Next resistance zone). Once these levels are taken out we have expect the further up move towards 15200-15300 levels. On the contrary if nifty fails to hold 14264 levels we may see further downside till 14037 psychological 14000 (first support zone) & on further we slide below 14000 the strong support zone is at 14760-14650. No Trade zone 14680-14264.
Bank Nifty Overview
Last week nifty open at 34088 and made a high of 34360 and touched a low of 32415 failed below the breakout levels of budget day & regained from the low and closed above the support levels at 33318 still lower by 2.47%.
Look at the Daily Chart of Bank Nifty where in important support and resistance levels are marked and we can expect some relief rally in bank nifty next week. First levels to watch for where you can go long in nifty is 33660 & can test first of resistance at 34700 levels and cross above 34700 we can see further up move. On the contrary 32745 is the very important level to look for and one can go short in bank nifty if the level is taken on the down side for big down side open. Bank Nifty will remain the key driver for next week.
Stock to Watch for Next Week
- Godrej Consumer Products
Let’s have a look at the above technical chart of Godrej Consumer Products – Technically the chart has given a bullish breakout and above 700-705 levels and closed above breakout zone at 710. We can expect the continuation of upwards movement towards 745 – 773 -800 levels. Once first level is crossed and sustained we can expect the move towards next level.Stop loss for this trade can be placed at 687 levels.
- Asian Paints
Above technical chart of Asian paints is indicating a move out of consolidation and we can expect some good upward move once crossed above the marked levels of 2535-40. The movement can continue towards 2745 & 2850 levels. Stop Loss for this trade can be placed at 2448 levels.
