Analysis - July 27, 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

Indian equity benchmarks logged gains for the sixth consecutive week the Nifty50 rising 2.6 percent for the week that ended on July 24. Better-than-expected corporate earnings, reports of potential vaccine developments and massive stimulus package announcement by the EU underpinned market sentiment. However, rising tensions between the US and China and surging COVID-19 cases in India and the US remain points of worries for the market. On July 24,  Nifty closed 21 points, or 0.19 percent, down at 11,194.15.

Let us see what's in store for July 27, 2020 and how the analysis for the last session (July 24, 2020) played.

Reliance Industries

Reliance is making all-time-highs daily - there is no stopping of the positive news flow and the price keeps ticking UP daily. Reliance crossed the 2100 marks on July 24, 2020 and made a high around 2150 levels. The price is at dangerously high levels and it is prudent to be cautious for wild swings. The results are due to be out this week (July 30, 2020) and that could be the deciding factor - until then news flows will keep the ticker moving - the latest being Amazon's interest in the Reliance Retail (JioMart) business.

For the lack of any technicals on daily/weekly/monthly charts, we will use the 3M chart to draw an ABCD pattern. Per this, Reliance could see the levels of 2350-2400.

The chart below shows the average daily volumes - in recent times, people have been buying Reliance heavily. Some of the supports to keep track of are 2057/1981/1936 for the price to settle if a reversal comes.

Intraday levels:

Buy above:

2120 - Target 2140 / 2160

2160 - Target 2180 / 2200

Sell below:

2120 - Target 2100/2080

2080 - Target 2060/2040

Bharti Airtel

Another day of negative close for Bharti on July 24, 2020. It made a high of 567 and closed at 559 right near the support levels. Will we see a bounce back this coming week ?

Intraday levels:

Buy above :

560 - Target 566 / 572

572 - Target 576 / 581

Sell below :

565 - Target 559 / 554 / 550

LIC Housing Finance

LICHSGFIN continued to trade in its range for yet another day. On the weekly it has printed a green candle. Lets see in this coming week, if this range gets broken - 269 on the lower side and 275 on the upper side.

Intraday Levels:

Buy above:

269 - Target 272 / 279

Sell Below:

269 - Target 266 / 262 / 258

HDFC Bank

HDFC Bank traded with a bearish bias on July 24, 2020 in the first session. As the GAP after the result got closed around 1100 levels, it staged a bounce to close at 1120. It has been trading in a channel from the PRZ. Adiya Puri has sold around 85 Lakh shares last week and lets see how the market reacts to this event in the coming week. The supports are around 1110, 1080, 1066 on the lower side.

HDFC

HDFC has seen sell-off post the spectacular run in the middle of the week. It has formed nice harmonic patter based moves as shown below. On the weekly, it has formed a DoJI and it has been trading in a channel for sometime now. 

For this coming week, HDFC is bullish above 1840 and bearish below 1842.

TCS

TCS has been trading in a long term chennel and it breached the same on July 24, 2020. It quickly retraced from the support around 2140 levels. Also there is the harmonic PRZ around 2130 levels as shown. TCS is nicely poised for an upmove with multiple supports in the area around 2120-2140 levels.