Friday’s sharp bounce in Index does not mean Bull is Back,
Nifty had a bounce back on Friday following last 3 days of bearish market it can be said that there was a positive sentiment after long in the market following the news of a upcoming fiscal stimulus as well as DOW JONES Index performing positively Coming back to our weekly recommendations which were also effected by the bearish market sentiment.
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But also stayed mostly unscathed while market made a huge downturn by NIFTY 50 stocks were moving more than 4.6% through the week.
Nifty Technical chart is now giving short term bearish signal, after making low at 7,500 in march.
Indian Market and US market generally move in the same direction, so, let’s see the technical chart of DOW.
DOW JONES ANALYSIS
As you can see in the chart, last week DOW gives a breakdown of Head and Shoulders Pattern and now it is trading in the range of 26,300 to 27,300… DOW nearest support is at 26,300 (+-50), if it breaks this support then it may move towards next support which is at 25,000…
Our view is range bond to bearish if supports broken… view will change to positive when it reclaims 27,300 levels and give closing above it.
Nifty movement this week
Open = 11,503.80
High = 11,535.25
Low = 10,790.20
Close = 11,050.25
Nifty next week outlook
Near support Zone = 10,800 (+- 20 points)
Near resistance Zone = 11,250 (+- 20 points)
View = Till nifty not Regain 11,250 level and close above it and RSI is below 60, we should follow
For long term Investors:- While the saying goes in the market which is
“Buy the Dip”
“Be greedy when others are fearful. Be fearful when others are greedy”.Warren Buffet
Every dip in market is a good investment opportunity. Accumulation of quality stocks which aren’t much effected by lock-down would be a great strategy while the dips are a good option for averaging out.
Upcoming Corporate Action, this week
Gujarat Ambuja Exports Ltd.
Weekly Data For FII & DII Data
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