Analysis - July 7, 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

The market gained for the fourth consecutive session and ended at nearly four-month high on July 6, with the Nifty50 climbing  156.30 points or 1.47 percent to 10,763.70. The rally saw indices jump 42 percent from their lows on March 23.

Lets see what happened as per the analysis on July 6, 2020 let us see what happened

Reliance Industries

Reliance Industries shares breached Rs 11.7 lakh crore market capitalisation-mark on July 6 as the stock climbed 3.57 percent to close above 1,850. As expected the CUP pattern was complete with a clear breakout. There was no reversal in sight and it gained 60 points from 1790 to close the day at highs. With this momentum, 2000 levels are on the horizon.

There is no pattern on shorter time-frame and we will use the Fibanocci levels to see what happens next. The immediate resistance could come around 1905 levels, also on the longer timeframe, we see a raising wedge pattern emerging - which is a bearish pattern. 

1700 levels are a good support zone and any dips to this level will be a good buy. Lets see if the 1800 levels hold to form a launchpad for 2000 levels.

Intraday Levels:

Buy above:

1830 - Target 1840/1850

1850 - Target 1870/1890/1907

Sell Below :

1850 - Target 1835/1820

1820 - Target 1810/1790

Bharti Airtel

Bharti opened gap up at 589 levels and it was a one way selling day today. As suggested the reversal came per the XABCD pattern and Bharti closed around 576 levels.

The trendline that was acting as a resistance thus far has been clearly broken and it is expected to act as a support now. 

Intraday levels:

Buy Above :

576 - Target 581 / 585 / 593

Sell Below :

573 - Target 564 / 558

LIC Housing Finance

What a session it was in LIC .. There was absolutely no movement - it traded the entire day in a 3 point range between 278 and 275 to form the perfect DoJI.

Tomorrow should be a simple day to take trade in LIC - Buy above 277 and sell below 276

Intraday Levels:

Buy above:

276 - Target 279 / 284 / 291

Sell Below

276 - Target 273 / 270 / 265

HDFC Bank

HDFC Bank opened with a GAP up and made some gains before the late selling came in. It is slowly and steadily making inroads to the targets of 1125, 1151 and 1199 per the harmonic patterns.

1066 and followed by 1020 will act as good supports.