Analysis - July 8, 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 Nifty remained volatile on July 7, but strength in late trade helped the index close higher for the fifth consecutive session supported by banking, financials and technology stocks. The index opened positive above the 10,800 mark, at 10,802.85, but wiped out all gains and hit an intraday low of 10,689.70 in late morning trades. In afternoon, the index gradually recouped losses amid volatility and gained strength in late trade to close 36 points higher at 10,799.70.

It closed near its opening levels and witnessed an indecisive formation, which resembles a Doji kind of pattern on the daily charts. 

Lets see what happened as per the analysis on July 7, 2020 let us see what happened

Reliance Industries

Reliance opened around 1860 levels and exactly from the 1.618 levels per the XABCD pattern shown, it started reversing to give a good trade on the SELL side. Though I missed to spot this, a reversal in the form of profit booking was expected after this surge above 1800.

Also this reversal comes right from the top of the trendline in the daily TF - now, the candles show a 'Dark Cloud Cover' pattern from the last 2 days. We could possibly see a bit of selling more in the coming sessions. Let's see if 1800 levels hold.

Intraday Levels:

Buy above:

1810 - Target 1830/1850

1850 - Target 1870/1890/1907

Sell Below :

1850 - Target 1835/1820

1820 - Target 1810/1790

Bharti Airtel

The selling in Bharti continued today also - it made a high of 582 and closed at the lows of 567. Bharti has been consolidating for long in this area, hightime it breaks out. 

We can expect a bounce back to the 580's immediately and on the downside 550 levels are a very good support.

Intraday levels:

Buy Above :

564 - Target 572 / 581 

581 - Target 589

Sell Below :

573 - Target 567 / 563

563 - Target 558 / 551

LIC Housing Finance

It was a volatile day - there was no clear direction and it is visible from the spikes (pin candles) all over the place. On the daily, a spinning top is printed and there is no change materially in the charts. 

We will need some momentum in either direction - otherwise it is just consolidating around.

Intraday Levels:

Buy above:

276 - Target 279/284/291

Sell Below

276 - Target 273 / 270 / 265

HDFC Bank

Another day of consolidation - no material change in the charts.