Support and Resistance for Nifty & Bank Nifty as per Technical Analysis & Derivative Analysis (Option Chain) for the upcoming week 25/07/2022.
Content-
Nifty Analysis,
Bank Nifty Analysis,
Special Note on Nifty and Bank Nifty,
Sectors in Focus for the Coming Week,
Buy Recommendation and Watchlist Stocks with Technical Charts, and
Previous Weeks Performance Report.
NIFTY ANALYSIS
COMMENTARY-
ACCORDING TO THE TECHNICAL CHARTS-
->In the weekly time frame, the structure of the Nifty is Still Bearish as 20SMA (16580.38) is below 50SMA (17073.93) and currently, the Nifty is in Supply Zone. ->The Resistance/Supply Zone which is 16705.25-16866.75 & the Support/Demand Zone is 16200-16400.
->20SMA is currently moving upward, but previously it is in moving downward.
->These levels are the make-or-break levels and will decide the fate of Nifty.
->RSI is at 51.69, a Bull's area, and RSI is in an upward trend.
->In the daily time frame, the structure of Nifty is Bullish as Close on Friday i.e. 16719.45 is above 20SMA(16084.83) & 50SMA(16070.32). ->20SMA is crossed above 50SMA in the last week. It is a Positive Crossover. ->The Resistance is at 16793.85 and the Support/Demand Zone is 16484.20.
->RSI is at 69.30, a Bull's area, and RSI is moving upward continuously.
->India VIX is at 16.65 is telling us that there is no panic at current levels and the market can go higher. Volatility will be low in the coming week.
ACCORDING TO THE OPTION CHAIN DATA-
->Currently Nifty is trading at 16719.45 and the monthly expiry is very near, we can see there is a lot of resistance in the option chain. Near Resistance is 16800 if it breaks we can see Nifty at 17000. ITMs are closing their positions on the call side and ITMs are building up on the put side.
->As per Option Chain, we can see there will be volatility in the coming week. As we will witness a good fight between the Bulls and the Bears.
->The resistance/Supply Zone is 16800, 17000 and the Support/Demand Zone is 16500- 16600.
CONCLUSION AND STRATEGY-
As per the above analysis, we can conclude that in daily time nifty is bullish which is also suggested by option chain data but the structure is negative in the weekly time frame, (but Marubozu Candle indicating Bullishness), is bearish because Nifty is still trading below 50SMA and 20SMA is also lower than 50SMA.
If Nifty will able to manage to get close above 16800 and sustains we can see Nifty on 17000-17200 levels in the upcoming week.
Option Chain is also suggesting the same levels of Resistance and Support.
India Vix is at a lower level in recent times.
For the upcoming week, we should wait for some time and take a trade when the price gives the breakout or take a trade when nifty moves downward after taking resistance at the prescribed levels. Let the Candles confirm to us where will nifty move.
Still, you have a good Risk Appetite, one can Make a Bull Spread if he/she Bullish or Bear Spread if he/she is Bearish.
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BANK NIFTY ANALYSIS
COMMENTARY-
ACCORDING TO THE TECHNICAL CHARTS-
->In the weekly time frame, the structure of the Bank Nifty is Bearish as 20SMA (35234.92) is below 50SMA (36461.69) but 20SMA has turned upward as compared to the previous week. Currently Bank Nifty is in Suppy Zone. ->The Resistance/Supply Zone is 36900 & the Support/Demand Zone is 36460(50SMA), 35870-36100.
-> Blue Lines in chart are representing a Gap which is not yet filled by the Bank Nifty if it will manage to give close above 36900 then this gap might get filled by Bank Nifty.
->RSI is at 54.93 which is a Bull's area.
->In the daily time frame, the structure of Nifty is Bullish as Close on Friday i.e. 36738.95 is above 20SMA(34729.41), 50SMA(34427.10) & 200SMA(36422.07) ->The Resistance/Supply Zone is at 36684.65-36868.90 and the Support/Demand Zone is at 35876.55-36083.70. ->Same Gap can be filled as discussed above if manage to give close above weekly resistance area. ->RSI is at 72.05 which is a Bull's area.
ACCORDING TO THE OPTION CHAIN DATA-
->Currently Bank Nifty is trading at 36738.95 and the options data is suggesting the highest open interest on the call side is at 37000 which is very near to the current level. The highest open interest on the put side is at 36000, and 2nd highest open interest is at 36500.
->We can see ITMs on the call side are closing their positions but on put side new positions are building up. We can take Bullish View in Bank Nifty as per the Option Chain.
CONCLUSION AND STRATEGY-
As per the above data points, we can conclude the Bank Nifty is Bullish in the upcoming week (Weekly Candle is also like Marubozu Candle) but Resistance/Suppy Zone is very near. One should wait before taking position. But Still one can want to make position can make Bull Spread (if Bullish) or Bear Spread (if Bearish).
SPECIAL NOTE FOR NIFTY AND BANK NIFTY->
From Last Friday till this Friday we have seen one side movement. Market didn't give close below than immediate previous close. Don't get confused with RED Candle, see price action properly. Nifty and Bank Nifty can give a fall on Monday/Tuesday. Please watch carefully and take position accordingly. You can make a good amount of profit if you will be able to catch the move on a particular day.
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SECTORS IN FOCUS FOR THE COMING WEEK
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Stock Recommendation and Watchlist Stock for the Coming Week-
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