Support and Resistance for Nifty & Bank Nifty as per Technical Analysis & Derivative Analysis (Option Chain) for the upcoming week 01/08/2022.
Content-
Previous Week Performance Report,
Nifty Analysis,
Bank Nifty Analysis,
Sectors in Focus for the Coming Week, and
Buy Recommendation and Watchlist Stocks with Technical Charts.
PREVIOUS WEEKS PERFORMANCE REPORT
The calls provided via Youtube Channel has given approx 140% returns from 11/07/2022, approx 25 days.
NIFTY ANALYSIS
The structure of the Nifty is Bearish as 20SMA (16612.29) is below 50SMA (17105.45) but 20SMA is flat and 50SMA is moving upward which suggests bullishness. Nifty is closed above 50SMA which shows a Bullish sign for the coming weeks if it is able to sustain above 50SMA.
The Resistance/Supply Zone is 17700-17800 & the Support/Demand Zone is 50SMA or Low of the current candle (17154.80). RSI is at 57.62, a Bull's area, and RSI is in an upward trend.
The structure of Nifty is Bullish as Close on Friday i.e. 17397.50 is above 200SMA(17002.45) & 20SMA(16669.55) is above 50SMA(16258.16). The Resistance/Supply Zone is 17500 or 17700-17800 and the Support/Demand Zone is 17161.25 (low of the current candle) or 200SMA. RSI is at 75.92, a Bull's area, and RSI is now flat. Blue Trendline is also going to be a resistance for Nifty.
India VIX is at 18.9150 is telling us that there is no panic at current levels and the market can go higher.
Currently Nifty is trading at 17397.50, there is 65K open interest at 17400 on the call side and 56K at 17400 on the put side. We can see a good fight between bulls and bears at this level. The highest & 2nd Highest Open Interest on Call Side is at - 17500 & 17600 The highest & 2nd Highest Open Interest on Put Side is at - 17000 & 17300 But Important to note here that Put ITMs have increased and Call ITMs are decreased on Friday. It shows bullishness in the market and suggests Bulls are going to break the Resistance, resultant to that we can see heavy short covering at 17500 which will take nifty higher and we can see 17700-17800 levels i.e. the level which has 3rd highest Open Interest.
CONCLUSION AND STRATEGY- We can conclude that Nifty is at Resistance Level which will be difficult to break, but at the same time nifty is not going down, it is hovering around resistance levels and heavy shorts built on the 17500 levels, if nifty is able to manage to give one close above 17500 then we can see heavy short covering. Technicals and Option Chain suggests the approx same levels of Resistance and Support. One can make bull spread if nifty breaks 17500 levels.
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BANK NIFTY ANALYSIS
The structure of the Bank Nifty is Still Bearish as 20SMA (35456.78) is below 50SMA (36545.86) and currently, both moving averages are on an upward slope which shows bullishness in the coming weeks.
The Resistance/Supply Zone is 38231.85 (high of the current candle), 38461.7-38765.85 & the Support/Demand Zone is 37250 (low of the current candle) or 37123.55-37224.25. RSI is at 58.69, a Bull's area, and RSI is in an upward trend.
The structure of Bank Nifty is Bullish as Close on Friday i.e. 37920.60 is above 200SMA(36369.93) & 20SMA(36456.77) is above 50SMA(35049.90). 20SMA has crossed 50SMA from below which also shows bullishness. Resistance and Support are at levels as suggested in the weekly time frame. RSI is at 73.10, a Bull's area.
Bank Nifty has given close at 37920.60 on Friday. We can clearly see that Put ITMs increased on Friday and call ITMs decreased which shows bullishness in the coming week. The highest & 2nd Highest open interest on the call side is at - 38500 & 38000 The highest & 2nd Highest open interest on the put side is at - 37000 & 38000 We can see a good fight at 38000 levels and this will be a make-or-break level.
CONCLUSION AND STRATEGY- We can conclude that resistance and support levels suggested by technicals and option chain are approx the same. 38000 level is the crucial and make-or-break level, this level will be deciding factor in which direction bank nifty will move. Option Chain is showing bullishness in the coming week. One can make Bull Spread if the 38000 level will be taken out by the Bulls.
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SECTORS IN FOCUS FOR THE COMING WEEK
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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.
Follow us on- Twitter- https://twitter.com/AdvisorsCred?t=DD2IfDx2f8crqaN8MEZPSA&s=08 Instagram- https://www.instagram.com/credadvisors/?igshid=YmMyMTA2M2Y= Facebook- https://www.facebook.com/CredAdvisors24x7/ Youtube- https://www.youtube.com/channel/UCO7eWmpdFiXyeL_KnipvsBg
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