Analysis - July 13, 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

Market rallied for the fourth consecutive week ended on July 10 boosted by the easing border tension between India and China and PM’s speech at the India global week summit. However, market remained volatile with rising Covid cases worldwide, which resulted in to increasing lockdown in some part of the country and kick start of June earnings from the India Inc which is likely to remain muted. Last week, the Nifty50 added 160.65 points (1.5 percent) to end at 10768 levels.

Lets see what happened as per the analysis on July 10, 2020

Reliance Industries

Reliance has gained almost 200 points since the start of July; July 10th saw Reliance making yet another life time high around 1880 and closed near the day's high. There is no dearth of positive news flow every week. All the dips are being bought and new highs are being made. 

Technically, per the charts some profit booking can come from the levels of 1907/1940. The 43rd AGM is scheduled on July 15th, 2020 and big ticket announcements are being expected. So before the AGM expect some volatility and if the global situation is good - 2000 levels could come in this week 

Per the long term weekly chart, we have got a good closing above 1800 with a solid GREEN candle. Expect 1800 to hold as a crucial support and a good entry level for fresh buys.

Intraday levels:

Buy above:

1860 - Target 1880/1890

1890 - Target 1900/1910

Sell below:

1880 - Target 1870/1860

1860 - Target 1850/1840

Bharti Airtel

The 'Bullish Harami' patten from July 9th gave a good follow up green candle on Friday - Though volatile, Bharti closes comfortably above the 570 levels. The trade range is getting very narrow per the charts below and the flag formation could give a breakout above 580 levels. 550 levels is a crucial support and a good buy level if any dips come.

Will we see a follow up buying on and form a 'Three white soldiers" pattern on Monday ?

Intraday levels:

Buy Above :

564 - Target 568 / 572 

572 - Target 576 / 581 / 588

Sell Below :

574 - Target 568 / 563

563 - Target 558 / 551

LIC Housing Finance

LICHSGFIN traded in the negative on July 10th session. It has printed a DoJI on the weekly - so we can take a bearish stance below 275 and a bullish stance above 278.

Also, on the daily, if we consider the recent highs at 290 to form a double top, we could draw an XABCD pattern - this will be activated below 259 and the target could be 248.

Intraday Levels:

Buy above:

276 - Target 279/284/291

Sell Below

276 - Target 273 / 270 / 265

HDFC Bank

The first target of 1125 is achieved and we got a reversal from there as expected. On the weekly, HDFCBank has printed a DoJI - so the view should be bearish below 1105 and bullish above 1110 

Crucial supports are at 1066 and 1019.