Monday morning can be troublesome for traders and investors as SGX Nifty settled down by 120 points on Friday. Nifty spot finally settled just below the 16000 levels at 15923.40. Nifty spot traded positive in the week but in a tight range because of low volatility. The volatility index moved below 12.00 which consider being the lowest level after February 2020. FII’s are the net seller while DII’s are the net buyers in the equity cash segment. Despite the sluggish move, most of the stocks rallied nicely in the week.
In the last week, consumer sentiments from the US drop as there is fear about inflation. Traders should have a close eye on the stock market because the rise in inflation created panic in the mind of traders and investors. US consumer confidence level falls unexpectedly to five months low. Consumers are in pain related to household, consumer durables, and all related necessities. Business inventory rises globally in the month of May and June because of demand constraints.
Our trendy stock Tata Steel skyrocketed. Gained almost 100 points.
Not only this… Our buying recommendations in ILF Wealth management, Happiest Mind, and SRF too proven great.
Nifty : Last close 15923.40
Nifty spot has support at 15650—15500 and resistance at 16000—16070
Decisive break and sustain above 16000 will take it to 16070 levels. This 70 point increases because of the rising wedge pattern as shown on the weekly chart.
Three consecutive close + weekly close above 16070 will take Nifty spot to 16800—17500+++ levels in days to come.
Or else it could test its support level of 15800 and then to 15720—15650 levels again.
Who will save Nifty below 15500 levels???
Still, there are very few diversions on the weekly chart. Positive cross-over RSI is trading around 67.00 which suggests support level buying in the Indian equity market.
Traders can buy Nifty as per spot around 15650 with stop loss below 15500 on a closing basis for the upside target 15900—16000.
Above 16070… Stop loss will be 15650
Bank Nifty: Last close 35751.80
Bank Nifty has the same story i.e. resistance at 36100.
Three consecutive close + weekly close above 36100 will take it to 39000—41500+++ levels in days to come or else it could test its support level of 35400—34700 again.
More and more downside panic we will see on a weekly close below 34700 levels
Alert: On Monday, 1st 45 minutes are crucial for the Indian market. So trade cautiously.
Sector to Watch
Metal sector…. Above 5400, target looks 5480—5525. We will see unexpected buying above 5525 levels.
Realty Infra… Catch stocks above 4462. Target looks 4600+++
Energy Sector… Grab stocks above 19700 with stop loss below 19390 for the upside target of 20400—20750
PSU, Consumption stocks, FMCG stocks may struggle for time being.
Trendy Stocks- Good for Investment
Cyient, Mahindcie, Sequent, Lupin, Flurochem, Orient Electic, UBL, Havells, Crisil, Nocil
Wockhardt Pharma, CDSL, NMDC, Bata India, DLF, Gillette, Mcdowell, Alembic, MCX
Jyothylab, Swsolar, ITC, Jchac, HDFC
Trendy Stock- Wockhardt Pharma
Wockhardt Pharma is trading near to its support on the weekly chart. It bounced from its support level of 515.
Traders can buy and accumulate Wochhardt pharma around 560—550 with stop loss below 450 on a closing basis for the upside target of 810.
Trendy Stock- Orient Electric
Marubozu candlestick pattern formed on the weekly chart.
This long-legged green candle formation near the resistance level is showing strength in the stock.
Watch 336 level closely in Orient electric…
Decisive break and sustain above 336 will take it to 355–363+++ levels in days to come
Support and stop loss below 320 on a closing basis