Analysis - August 3, 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 broke the sixth consecutive week rally in the week ended July 31 on the back of profit booking seen due to the mixed global and domestic factors including possibility of a sharp rise in NPAs in FY21, India Inc earnings, July F&O expiry, status quo policy decision by US Fed, worst US Q2 GDP data and resurgence in Corona cases worldwide. Last week, e the Nifty50 shed 120.65 points (1 percent) to end at 11073.5 levels. In the July Series Nifty rallied nearly 8 percent. Among sectors, Nifty IT rose 25 percent, while Nifty Media, Realty and PSU Bank sectors shed 7 percent each.

Let us see what's in store for Aug 3, 2020 and how the analysis for the last session (July 31, 2020) played.

Reliance Industries

Reliance Industries gave up more on Friday post the results as the street did not cheer - it took support at the the 2057 levels after initially trading above 2100 levels. If 2050 levels get breached, there is an every possibility to test 2000 soon.

Bharti Airtel

Bharti opened at around 550 but fell to 546 on opening trade and then gradually gained to make a high around 560 and closed at 555 for the day. The support zone at 560 is now providing some resistance. There should be a closing above 560 for further upmoves. The 530 levels on the downside is still a good support zone. Bharti is trading in an extended consolidation area for too long now.

LIC Housing Finance

LICHSGFIN traded in a 5 point range on Friday - opened at 265, made a low at 260, high at 266 and closed at 262. It is now trading in a downward channel on the daily charts. On the XABCD chart, we have got a closing below 263 and if it continues to trade below 263, it is possible to test the 257 levels too from where a possible bounce could come. 257 is also the zone of the trendline moving up and a bounce looks imminent.

HDFC Bank

HDFC bank shed more points and went till the 1.13 Fib levels in the XABCD chart around the PRZ at 1018 levels - this is where it has found its reversal on Friday. Also this zone around 1030-1020 is the support zone and appears to have halted its fall. The ABCD pattern o the daily TF stands invalid now and its importat to hold the 1018 levels failing which bigger downfall is possible.

HDFC

HDFC shed 50 points in the opening trade from 1817 to 1767 where it found the PRZ of the XABCD pattern. It bounced from 1767 levels to 1810 but was volatile through the day and closed at 1787. HDFC has bounced already 2 times from this area a couple of times earlier and hope it does it again. If HDFC trades below 1750, it could see much lower levels of 1680.

TCS

TCS opened around 2298 and made a high of 2335 and started loosing steam and started its fall to make a low at 2260 and closed the day at 2290 levels. It has been trading in a consolidation zone after its bounce. Lets see if it holds its 52 week high levels and moves further up or gives away its gains in the coming days.