Skip to main content

Nifty Bank nifty and Dalal street In 1st week Of June 2020- Global Markets will be the KEY

Nifty Bank nifty and Dalal street In 1st week Of June 2020- Global Markets will be the KEY
--------------------------------------------------------------------------------------------------------------------

Before moving to analysis of coming week ,lets have recap what we had discussed on last week as Nifty had Precise Expiry nearby to 9500 as last been discussed by me on 24th May Post.
As we told that Bank nifty remain in extreme oversold condition, it went precisely correct and from that level it moved strongly to the level of 250 points

This week technical remain more or less same, for support level OI build up and resistance we can refer this write up as well.

The most important events which may dominate the technical this week is some strong bear sentiments prominently to be look forward.
!) US president statement to declare important decisions on Friday evening about trade deals with china,although he cleverly left rooms for negotiations.
2)India's  GDP data, which was hugely expected to be on negative side , ultimately came as positive as 3%, see market has already discounted this news in terms of being bearish as it was supposed to come in negative territory but it surprised .
3) Auto Sector monthly sales data as it was broadly discussed and has  Chinese whisper that due to lock down it will be negative since none of production has happened.but it has hardly affected Auto sector because market didn't get affect with news which has no element of surprise to it, infarct Hero motocorp is trading now in that range what it was trading before breakout of pandemic that is 2400,infarct auto sector had good rally.
4)Last one is Corona virus cases is in full swing in India and it has become worlds's highest lock down period.
5) Last is Border dispute ,which market didn't give importance even last week and gave good results last week

One important thing is that in case of Bull case scenario is that Trump is always open to negotiations with china ,US market didn't fall and closed in greens
Indian markets GDP data was not as bad as it was expected but since it was Jan to march quarter  and most of the time all industrial and economic activities were on so it can be termed as not satisfactory.Most concerning thing can be of this quarter of April to June 20 .But GDP  is always lag indicator not lead indicator.
Auto sales data as discussed has been already subsided by market because it was expected only and it has been not given any importance by Market.
How long FII's will keep on selling ,entire month it was around a figure of 15,000 crore and due to last week's bullishness it is apparent they have come back in market and whenever followup rally comes in market it goes up to level of at least 1000 points by FII's.
There may be a knee jerk reaction on Monday but overall market sentiment on rest of days will remain bullish as FII's data indicates entering into the market again and hence there is no point ,they will runaway just after entering.
Coming on to finally technical as Open interest , 9000 and 10000 put and call are highest and due to world margin system OI data is not substantial but due to implementation of new margin system , we are expecting it to shoot up.
 Hence 9700- ,9800 &10000 will remain R1 ,R2,R3 and 9500,9400,9200 will be major S1.S2,S3 for entire week


Comments

Post a Comment

Popular posts from this blog

STOCK CHART PATTERNS

  Stock chart patterns   are simply a visual representation of the prices buyers and sellers bought and sold at in the past. There is no magic in a chart pattern they just show you what happened in the past and what has a higher probability of happening in the future. The best use of chart patterns is to take a wider view of the trend on your time frame of choice and follow the path of least resistance.  A chart pattern can show that a stock is in a range with defined resistance and support. A chart could also show an uptrend of higher highs and higher lows or a downtrend of lower highs and lower lows. Stock chart patterns signal whether a stock is under accumulation or distribution or just trading in a defined price range.  The most popular use of stock chart patterns is for breakout trading signals as the probability increases of a move in a specific direction after a price breakout of a previous support or resistance. They are basically momentum indicators. The va...
Post a Comment
Read more

FLOAT IN STOCK MARKET

  Float in a stock is the number of shares of a company that is currently trading publicly on the exchange and is available for traders and investors to buy and sell. The stock float is calculated by taking a company’s total issue of outstanding shares and subtracting any restricted stock. Pre IPO investors, employees and founders can’t sell their restricted shares because they can be in a lock-up period for a time following the IPO usually between 90-180 days. Executives and insiders many times can also be restricted from selling shares around earnings announcement dates.  This occurs when an insider could have knowledge of information not public yet where the sale of shares could be considered insider trading in a legal sense. A company’s float is an important metric to show the liquidity of shares for a company. It can show the supply of shares on the open market and give a clearer view of supply and demand. Share float is the shares traded on the stock exchanges and price ...
Post a Comment
Read more

Golden Cross Stock Trading Strategy

  he Golden Cross stock trading strategy is an example of a simple long term trend following system. This is one of the most popular and famous bullish moving average crossover signals that is watched and talked about on financial media when they occur on major indexes. The second most popular being the loss of the 200-day moving average on a stock market index like the S&P 500 or the Dow Jones Industrial Average. The Golden Cross happens on a stock chart when the 50-day simple moving average crosses over the 200-day simple moving average and stays above until the end of the day. This signal has you go long when the 50-day simple moving average closes above the 200-day simple moving average and takes you back to cash when the 50-day SMA closes back under the 200-day SMA which is signaling the Death Cross. The inverse of the bullish Golden Cross is the bearish Death Cross which is a signal to exit long positions or a short selling signal. This trading strategy is best compared t...
Post a Comment
Read more