Yogesh
- Jul 31, 2022
- 5 min read

WEEKLY STOCK MARKET ANALYSIS-01/08/2022

Support and Resistance for Nifty & Bank Nifty as per Technical Analysis & Derivative Analysis (Option Chain) for the upcoming week 01/08/2022.

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

Nifty Daily Chart, Green-200SMA, Red-50SMA & Black-20SMA

COMMENTARY-

ACCORDING TO THE TECHNICAL CHARTS-

As we have closed this month so we will start our analysis with Monthly Time Frame, Nifty closed(17158.25) above 20SMA(16175.90) which shows Bullish sign in the coming weeks.

We can consider 20SMA as a support and resistance/supply zone is at 18114.65-18350.95.

RSI is also at 62.63 which has given reversal from 54.92. Currently Nifty is in Bull's Area.

In the Weekly Time Frame, the structure of the Nifty is Still Bearish as 20SMA (16606.77) is below 50SMA (17086.51) and currently, the Nifty is closed above 50SMA which shows Bullish sign for coming weeks, if it is able to sustain above 50SMA.

The Resistance/Supply Zone is 17414.70-17442.35 & the Support/Demand Zone is 50SMA or 16824.70-16888.70. 20SMA is currently moving upward, but previously it was in downward. RSI is at 55.60, 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. 17158.25 is above 200SMA(17025.13) & 20SMA(16326.37) is above 50SMA(16138.87). The Resistance/Supply Zone is 17414.70-17442.35 and the Support/Demand Zone is 16888.70-16824.70. RSI is at 72.77, a Bull's area, and RSI is moving upward continuously. India VIX is at 16.55 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 17158.25, but still there is 70K Open Interest at 17100 and 43K at 17000 on call side. If these levels not sustains in coming week then we can short covering at these levels and this can take Nifty to the higher levels. We can see Highest Open Interest is at 17600 on call side and 2nd Highest Open Interest is at 18000.

Highest Open Interest on put side is at 17000 and 2nd Highest Open Interest is at 16900.

Resistance is very from far from current levels but support is very near to current levels which shows bullishness in the coming weeks. The resistance/Supply Zone is 17300, 17500-17600, 18000 and the Support/Demand Zone is 16900-17000.

CONCLUSION AND STRATEGY- As per the above analysis, we can conclude that in daily time frame nifty is bullish which is also suggested by option chain data but the structure is still negative in the weekly time frame (but candlestick formed is suggesting bullishness in coming week), because 20SMA is below 50SMA. In Monthly Time Frame nifty has given the close above 20SMA with huge margin which shows bullishness in the market.

In daily time frame we can see there is consolidation in April'22 & May'22 which can work support(16824.70-16888.70) and resistance(17414.70-17442.35) for Nifty. These are make or break levels for Nifty. If support breaks then we can see nifty at 16600 levels and if resistance breaks then we can see nifty at 17800-18000 levels

Option Chain is also suggesting the same levels of Resistance and Support.

India Vix is at a lower level in recent times which is suggesting low volatility in the coming week. Iron Condor can be good strategy to implement for the week, there are high chances nifty will be in range, so you can make amount of profits in this strategy.

BANK NIFTY ANALYSIS

Bank Nifty Option Chain - Expiry 04/08/2022

COMMENTARY-

ACCORDING TO THE TECHNICAL CHARTS-

As we have closed this month so we will start our analysis with Monthly Time Frame, Bank Nifty closed(37491.40) which is above 20SMA(35239.53) which shows Bullish sign in the coming weeks.

We can consider 20SMA as a support and resistance/supply zone is at 37976, 38461.7-38765.85.

RSI is at 59.11 which has given reversal from 50.97. Currently BankNifty is in Bull's Area.

In the Weekly Time Frame, the structure of the Bank Nifty is Still Bearish as 20SMA (35382.18) is below 50SMA (36488.13) and currently.

The Resistance/Supply Zone is 37976, 38461.7-38765.85 & the Support/Demand Zone is 50SMA or 37123.55-37224.25. 20SMA is currently moving upward, but previously it was in downward. RSI is at 57.33, a Bull's area, and RSI is in an upward trend. In the Daily Time Frame, the structure of Bank Nifty is Bullish as Close on Friday i.e. 37491.40 is above 200SMA(36400.59) & 20SMA(35583.41) is above 50SMA(34729.76). The Resistance/Supply Zone is 37976, 38461.7-38765.85 and the Support/Demand Zone is 37123.55-37224.25. RSI is at 74.01, a Bull's area, and RSI is moving upward continuously.

ACCORDING TO THE OPTION CHAIN DATA- Currently Bank Nifty is trading at 37491.40, there is 68K Open Interest at 37500 and 26K at 37400 on call side. If these levels not sustains in coming week then we can short covering at these levels and this can take Bank Nifty to the higher levels. We can see Highest Open Interest is at 38000 on call side and 2nd Highest Open Interest is at 37500.

Highest Open Interest on put side is at 37000 and 2nd Highest Open Interest is at 37500.

Resistance and Support is at same level, we can see a good fight at 37500 levels.

CONCLUSION AND STRATEGY- As per the above analysis, we can conclude that in all the time frame bank nifty is bullish. In monthly time frame Bank Nifty has given the close above 20SMA with huge margin which shows bullishness.

In daily time frame we can see there is consolidation in April'22 & May'22 which can work support(37123.55-37224.25) and resistance(37975.90) for Nifty. These are make or break levels for Bank Nifty. If support breaks then we can see bank nifty at 36400 levels and if resistance breaks then we can see bank nifty at 38500 levels

Option Chain is also suggesting the same levels of Resistance and Support. Iron Condor can be good strategy to implement for the week, there are high chances bank nifty will be in range, so you can make amount of profits in this strategy

SPECIAL NOTE FOR NIFTY AND BANK NIFTY->

There is consolidation in April'22 and May'22, this range is very important for Nifty and Bank Nifty for coming week. We are expecting consolidation in the coming week. So we are suggesting an Iron Condor Staregy to be implemented. Please make your position size as per you Risk Management Strategy.

SECTORS IN FOCUS FOR THE COMING WEEK

Stock Recommendation and Watchlist Stock for the Coming Week-

A detailed discussion has been uploaded on Youtube. Youtube Channel Link- https://www.youtube.com/channel/UCO7eWmpdFiXyeL_KnipvsBg Comment, Share, and Subscribe.

A detailed discussion has been uploaded on Youtube. Youtube Channel Link- https://www.youtube.com/channel/UCO7eWmpdFiXyeL_KnipvsBg Comment, Share, and Subscribe.

PERFORMANCE REPORT Stock Recommendation and Watchlist Stock of the Previous Weeks

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WEEKLY STOCK MARKET ANALYSIS-01/08/2022

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