Analysis - June 23 , 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

Nifty continued its northward march for the third day in a row to close at 10,311 levels, the highest since March 11, despite weak global cues. The Nifty Bank closed 1.74 percent higher at 21,708.35. The coming days could be volatile because of the monthly expiry.

Let us see how the analysis for  June 22, 2020 performed and the levels for June 23, 2020.

Reliance Industries

As was shown in the chart, Reliance hit 1800 from 1760 levels on open and reversed from there possibly due to profit booking. It made a low of 1734 and closed at 1754

1800 could act as a resistance for the immediate term. If 1720 levels break, we could possibly see 1600 levels as well. Futures OI indicates a bit of long covering as well, but rollover to July series is also happening.

The chart shows an 'Evening Star' formation - So if Reliance trades below 1750 (today's close), short opportunity can be looked at.

Intraday Levels:

Buy above:

1750 - Target 1760/1780

1780 - Target 1800

Sell Below:

1750 - Target 1740/1730

1730 - Target 1720/1690

Bharti Airtel

Bharti gave a breakout of the triangle pattern today. Opened at 575, made a low of 570 and a high of 588 and closed at 581.

We will have to watchout on June 23 for confirmation of this breakout. Per the XABCD pattern, if 594 levels are taken out, Bharti could make new highs. Also 594 levels could act as resistance levels too.

Futures OI is showing increase suggesting new longs - so will watch the price action tomorrow.

Intraday Levels:

Buy Above :

570 - Target 575/581/588

588 - Target 593/600

Sell Below :

593 - Target 585/578

578 - Target 572/563

563 - Target 558/550

LIC Housing Finance

The 'DoJI' played out on the short side very well. LICHSGFIN opened at 279 with a gap down and traced the entire channel length to close at 268.

We could either see a bounce from 268 to retrace the channel or breakdown of the channel to lower levels.

Futures OI show a high increase of 23% indicating new shorts being added. So if the script traded below 268 levels, short position can be initiated.

Intraday Levels:

Buy above:

268 - Target 273/279

279 - Target 284

Sell Below:

279 - Target 273/268

288 - Target 258/251