Analysis - July 10, 2020

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

Bulls were back in action on July 9 after taking a day's breather following a five-day run-up. The Nifty50 continued to trade in a positive terrain throughout the session and closed at more than a four-month high, backed by positive Asian cues, and rally in banking & financials and metals. The Bank Nifty opened positive at 22,753.15 and after an early consolidation, headed towards 23,000-mark in the last hour of the session. The index closed at 22,907.20, up 322.55 points or 1.43 percent and formed a bullish candle on the daily charts.

Lets see what happened as per the analysis on July 9, 2020

Reliance Industries

Reliance opened at 1809 and quickly lost ground to hit 1785 levels - from there as was expected, it gradually started gaining ground to hit a high of 1834 and closed the day at 1825. We can see that the wedge lines are respected religiously. 

Also, now we could draw a 4-point ABCD pattern which becomes valid only above 1864 - per this the upside target now is 1940. 1864 could provide some resistance though.

Intraday Levels:

Buy Above:

1790 - Target 1810/1830

1830 - Target 1845/1860/1870

Sell Below:

1830 - Target 1820 / 1800 / 1790

Bharti Airtel

The expected bounce came in today - though it was a volatile day - opened at 562, made 568 and hit 560 again and eventually broke the day's high at the end of the day to close at 570.

The trendline shown has been providing good support and it is important that it is not broken. We have a triple top which could be lethal if the trendline is broken. At this point, my view is bullish and we should expect to hit 590 shortly. The last two days candle could be considered to form a 'Bullish Harami' pattern.

Intraday levels:

Buy Above :

564 - Target 568 / 572 

572 - Target 576 / 581

Sell Below :

568 - Target 563 / 558 / 551

LIC Housing Finance

It was again a range bound day with the trade happening in 3 points. A spinning top is printed on the daily and it is slowly inching up.

Intraday Levels:

Buy above:

281 - Target 284 / 291

Sell Below:

281 - Target 279/ 276 / 271

HDFC Bank

Our first target of 1125 is achieved per the analysis posted on June 28, 2020. Should we expect some profit booking from here or will we hit the next target of 1151 ?