Hello everyone.
So this weekend, in place of a YouTube video, I am writing this blog, wherein we will first discuss what we had spoken about last week, and then try to understand, what moves are probable in upcoming week.
The market took out the mentioned resistance of around 10650 with ease, converting that level into support during subsequent pullbacks. And we marched ahead towards the next level of around 10880, ending the week around 10760 finally. The strong trend, thus sustained well.
The stock of JSWSTEEL that was appearing weak, did go below the threshold of 192, but found no follow through & then made 2 attempts to rise strongly, giving nice intraday moves, yet failing in less than an hour and back to lower levels before end of day. All in all, it remained volatile & ended the week at almost same level as prior weeks’ closing. Thus a contracting week.
Moving ahead, it still remains at crucial threshold level, and the range is 191 to 196. Depending on context, I am expecting expansion in upcoming week as well in either directions. Markets these days, are notorious for setting up on one side and moving on the other. So much agility would be required to actually trade these names, and may even require switching directions at times.
Same is the case with Bajfinance, which too has contracted nicely through the week. Expecting an expansion there as well. The amazing thing about this name is that, it has made an attempt to stay at higher levels despite the astronomical rise of recent months. Such behavioral patterns instill confidence about further rises, provided the context keeps supporting. If not, the same names would be highly vulnerable for corrections as well, merely out of profit bookings. What more? Despite corrections of a few percentages, the trends would still remain intact. Support visible at 3150 & 3030.
Both above names are at critical juncture and I would be watching them closely.
Nifty has been facing resistance around 10850, and another failure to cross that would increase chances of correction towards 10650/600. Bank Nifty remains weaker, and trade-able on both sides. In case of a fall, strong support comes in around 21650 & resistance around 23100.
Reliance remains a strong name and may keep holding the fort and may keep finding support even if it comes down lower 1860/50.
Tata steel is another decent looking bullish chart with clearer space for rise, if the context remains favorable
Please note, this study of charts is in no way meant to give buy/sell calls in any names and for anybody. There are no entry/exits being given, or trade designing being done here.
