NIFTY
Second time in the morning session NIFTY showed bullishness and bounced from 24000 level but reversed completely in the second half facing resistance from 24300 level closing near the open of the day i.e. 24092.
Since Oct 23 it has faced resistance from 24500 level multiple times(refer Fig-1) and it will continue to be an important level on 15 mins. as well as on daily timeframe.
Fig-1: NIFTY on 15 mins. timeframe
On daily time frame 23900-24000 level will be acting as strong support(refer Fig-2). Until now, it has been retested twice this month on Nov 4 & 5. As the sellers dominate probability of NIFTY breaking this level is high. 20 & 50 day Moving Averages are falling.
Fig-2: NIFTY on daily timeframe
BANK NIFTY
BANK NIFTY has been stuck b/w 52500 and 50400 for more than 2 weeks(refer Fig-3). However, it showed some strength on Nov 5 when it gained +992 points and this day still continue to hold importance for buyers. After fake break down of 51300 level on Oct 25 and Nov 4 it reversed and we did not see any follow through on the sell side. Till date trend on daily time frame is unclear.
Fig-3: BANK NIFTY on daily timeframe
On 15 min time frame(refer Fig-4) it is seen creating higher lows 50860 and 51300 are the two higher lows it has created after touching the low of 50400. These are the two crucial levels on 15 min timeframe. Also it closed near 51800 which is another important level, if BANK NIFTY continues to trade above it then the chances are higher that it is going to break 52400 level on the upside whose possibility is high.
Fig-4: BANK NIFTY on 15 mins timeframe
Star Performer of the Day
Out of all the sectors NIFTY IT looked very strong. It closed above 20 and 50 day moving averages with strength. Even in the weak broader market it did not show much correction or volatility.
Fig-5: NIFTY IT on daily timeframe
Below are some technically strong looking charts
Tech Mahindra
Fig-6: Tech Mahindra on daily time frame
Coforge Ltd.
Fig-7: Coforge Ltd. on daily time frame
Eclerx Services Ltd.
Fig-8: Eclerx Services Ltd. on daily time frame
HCL Technologies Ltd.
Fig-9: HCL Technologies on daily time frame
Info Edge Ltd. (Naukri)
Fig-10: Info Edge Ltd. on daily time frame
Netweb Tech India Ltd.
Fig-11: Netweb Tech India Ltd. on daily time frame
Newgen Software Tech Ltd.
Fig-12: Newgen Software Tech Ltd. on daily time frame
Oracle Financial Services Software Ltd.
Fig-13: Oracle Financial Services Software Ltd. on daily time frame
Zaggle Prepaid Ocean Services Ltd.
Fig-14: Zaggle Prepaid Ocean Services Ltd on daily time frame
These were some of the stocks which have held well in this correction until now. We expect them to do well going ahead when the buying force returns to the market.
This brings us to the closure of today's blog. I hope you enjoyed reading it as much as I enjoyed writing it. Thank you for your time ! You can connect with me over LinkedIn and X(Twitter). For learning momentum based trading you can watch videos on YouTube. I'm a student for life, so don't hesitate to send over your views or sources to help me enlighten myself. You can also subscribe to our weekly newsletter(to be launched soon) and know the pulse of Indian and US stock market and remain ahead in generating Return on Investment(ROI) by reading our weekly while sipping your Sunday morning coffee.
Comments