On Friday, The Nifty50, opened gap up at 16,516 and remained higher throughout the session ranging between 16,749-16,478. The index finally settled at 16,658, up 410 points or 2.5 percent.
Nifty50 smartly recouped around 50 percent of the losses witnessed in Thursday’s trading session. However, there seems to be multiple hurdles in the zone of 16,800 – 17,065 levels which not only includes bearish gap zone but also 200-day simple moving average whose value is placed around 16,903 levels.
As discussed in last report, in this week too Nifty took resistance at 20 day SMA or Bollinger Band middle line. Last report, we discussed about, Nifty is trading in Symmetrical Triangle & the same is broken on downside and we can assume that Nifty can go to 15200-15300 levels i.e. target of Symmetrical Triangle Breakdown.
Interestingly Nifty Has managed to take support at upper band of Falling Channel, which we are following from 4 months. In this week too we are expecting volatile movements owing to important data release, Monday GDP Quarterly , Wednesday Manufacturing PMI , Friday Services PMI.
DAILY CHART OF NIFTY50
On Friday, Bank Nifty also opened higher at 35,902 and headed towards 36,700 levels but remained stuck in a range of 36,250 to 36,650 levels for the major part of the session. It failed to surpass previous day’s high but managed to close with gains of 1,203 points at 36,431.
Banknifty Daily Chart shows that it formed Rising Wedge Pattern, same is broken on downside and target is achieved. In coming week we can expect some relief rally till 37500-37900 levels.
DAILY CHART OF NIFTY BANK.
On Monday Banknifty too Opened Big Gap Up and Closed at 38635 and did managed to close above Falling Trend Line, but the same turned out False Break out in following 3 days till Thursday. It again went below the falling trend line, and on Friday we seen some relief rally but still it closed below falling trendline.
Weekly Candle formed is Long Legged Doji indicating High In-Decision. Fresh Buying only above this week’s high. Above 38765 one can go long.
Mondays(4th April 2022) Gap Up opening can still Act As support so watch out for 37200 levels for support, below which one can do fresh selling.
Stock Of The Week
BASF India Ltd.
After a big rally in Stock prices, from 1000 to 4000 levels, prices taking breather at current levels. Stock Price is consolidating in range between 2600 – 3200.
Stock Prices RSI showing Positive Divergence, against Double Bottom it has recently formed, indicating up move in near term. Strong Buy zone is formed around 2600 levels so; one can enter into stock at CMP 2780 or on decline till 2680 keeping Stop loss below 2600 levels on daily closing basis.
We expecting stock price to rise till 2850 – 2970 – 3120 – 3230 in coming days. Fresh Buying can trigger above 3250 levels till 3600-3820-4000 levels.
Major Indices at a glance
Majority of indices saw a negative week. Nifty Media was Top Loser in this week, followed by Oil & Gas, PSU Banks & Nifty Auto. While India Vix is Up by 20% in this week indicating Fear is increased in Markets.
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