Analysis - June 22, 2020

DISCLAIMER : THIS IS A BLOG TO TRACK MY PERSONAL ANALYSIS. SHARING IT FOR EDUCATIONAL PURPOSE ONLY. I AM NOT SUGGESTING A TRADE BASED ON THE LEVELS GIVEN HERE

The Indian market ended the week ended June 19 on a positive note as Nifty rose almost 3 percent week-on-week. The markets had begun the week on a negative note as fears of a second wave of COVID-19 infections sent jitters across global markets. Geopolitical tension between India and China also kept the markets in check.

Experts point out that the recent up-move indicates participations are hopeful of de-escalation of tension between India and China. 

Let us see how the analysis on June 19, 2020 performed and the levels for June 22, 2020.

Reliance Industries

Reliance opened at 1670 and stayed sideways in the first session. It started to raise around 12pm from 1684 and made a high of 1788 and closed around 1763. It was just a rocket move 🚀🚀to take out all the tragets that we had as per the ABCD pattern in the last analysis.

So, what next is the question ? Reliance is at an all time high and into an uncharted territory. The Future's data suggest a huge increase in open interest of around 8% and somewhere profit booking also has to come.

Per the Fibanocci retracement of the entire down move, we could possibly see some profit booking coming around near 1800. If 1800 sustains, 1900 and above does not look hard 😛

Intraday Levels, if sustain :

Buy Above :

1760 - Target 1780/1800

1720 - Target 1740/1760

Sell Below :

1800 - Target 1780/1760

1760 - Target 1740/1720

Bharti Airtel

Bharti opened at 560 and was volatile a bit in the first sesssion (made 569 and then fell to 560 again). In the second session it just zoomed 15 points to breakout the trendline/neckline resistance at the 570 levels and closed around 576.  We got a good BUY trade as per the levels suggested.

For the coming week, it is in a interesting zone - sort of an inflection point. The charts below show the trendline/necline breakout and a triangle pattern also. If 575/578 levels sustain, we could see a positive breakout towards the 590 levels. If 572 levels is given up, lower side seems possible.

The futures data also indicate an aggressive short cover (of around 2%) suggesting possible upside. We will have to see how the price action plays out on June 22, 2020. 

Intraday Levels:

Buy Above :

573 - Target 580/585/591

563 - Target 573/580

550 - Target 563

Sell Below :

590 - Target 585/578

578 - Target 572/563

563 - Target 558/550

LIC Housing Finance

It was a subdued day in LICHSGFIN with a narrow range trade between 280 and 287 forming a DoJI on the daily as well as weekly chart.

Nothing changes in the chart - 296 is still a level to break on the upside. 

Futures data show an increase of 6% in the IO and new longs coming in. 

284 is the level to watch on June 22, 2020 - above 284 go long, below 284 go short. 

Intraday Levels:

Buy above:

283 - Target 292/296

296 - Target 305/315

Sell Below:

296 - Target 292/288/283

283 - Target 275