BankNifty Update for Jun-29, 2020

On Jun-26, Banknifty traded in a range of 21800-21300. The daily chart shows the possibility of formation of a wedge structure. The bearish divergence on the MACD histogram reinforces this wedge possibility. So we need to be cautious on the upside.

The top made on 24-Jun was exactly 60 trading days (and 92 calendar days) from low made on Mar-24. It suggests a trend change possibility with Jun-24 as a top. The Low made on Mar-24 was exactly 60 trading days from Top made on Dec-30, 2019.

The Hourly chart shows a bearish MA crossover. The banknifty is now consolidating in the range after crossover. This increases the possibility of down move or further consolidation in the range of 21800-21300 before any big upmove.

Gann Box:

The daily gann Box shows a strong resistance zone @ 22000-22200 and support @ 20700-20400.

FNO Data:

Future OI reduced by 6% suggesting short covering, but a huge discount in the spot to future price (130 points) suggests bearish sentiments.

Trade Plan:

Above 21800 targets are 22000/22200

Below 21300 targets are 20950/20700

Comments

DAX analysis for a client

DAX Index Analysis For upto Feb 29, 2020 : Daily chart shows prices are at Strong resistance zone at upper trend line (red color). On Friday (Feb 14, 2020) it formed a Doji candle that is a sign of reversal as it formed at top and at resistance zone. So correction or reversal from this level is very likely. If prices cross above 13950 and sustains above then Breakout on upside is possible. But this looks very unlikely for at least few days as RSI indicator is also at resistance. At present it is in no trade zone. Best scenario is to wait for price to break 13600. Trade opportunities: Long Trade: Above 13950 for target of 14300. Short Trade: Below 13600 for target of 13450/13400 and below 13400 for target of 13100/13000 DAX Analysis for Swing Trade on Weekly Charts: Weekly chart shows price is at multiple channels and trend lines resistance. Trade opportunities: For few weeks or months holding Long Trade: Above 13950 for target of 14300/14800 and brea

Bullish Bets for coming week (Apr 13-17)

I have summarised my analysis in the following table. These are bullish stocks. Please do your own analysis and these are not recommendations but only for learning purposes Stock CMP Tgt 1 Tgt 2 Tgt 3 ITC 185.25 203 210 VEDL 76.8 92 96 NCC 20.15 23 26 28 RBL 120.85 134 140 SUNTV 338.3 360 365 390 CANBK 91.5 111 118 121 SBIN 187.75 194 202 211 RECLTD 89 101 106 INDIGO 1041.95 1100 1140 1160 HINDPETRO 207.85 218 223 227 Hindalco 107.55 113 127 134 CHOLAFIN 171.75 185 204 225 BHARATFORG 245.55 277 288 299 SRTRANSFIN 675.95 730 785 840 .

Bank Nifty Bigger Time Frame Analysis

I have posted following weekly chart of Bank Nifty in my Dec 15 post. This chart shows similarity in patterns. The pattern started in Aug 2013 and completed in Oct 2016 as shown below: This is "Extracting Triangle Pattern" as per Advanced Elliott Wave (Neo Wave). Ongoing pattern looks similar to Extracting Triangle Pattern and as per this pattern wave D seems to be in progress. After completion of wave D, index will move towards upward channel line(RED) in wave E. Once the pattern gets completed, we should expect index to go below wave D. I am just aware about Neo wave patterns but do not have knowledge about its calculations/counts. In Extracting Triangle pattern, each successive wave in the direction of trend contracts while corrective waves expand (wave A< wave C < wave E, wave D > wave B) It looks similar to Head & Shoulder pattern So possibility of Down move is quite high post Jan 2017.

MoneyNaad

Search This Blog