STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT … · EQUITY WEEKLY NEWSLETTER 24TH AUG, 2020 STOCK...

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Monday, 24 TH AUG 2020 www.capitalways.com EQUITY WEEKLY NEWSLETTER 24 TH AUG, 2020 STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT Technical based Trading and investment call Entry- Exit Trend Reversal+ Proper Stop loss NIFTY: 11382.90(0.69%) Nifty index closed at 11382.90 Up 77.50 or 0.69 per cent. Nifty50 on Friday reclaimed the 11,350 mark, but formed a bearish candle on the daily chart, as the index gave up some of the opening gains. The NSE barometer, which stayed above its five-day moving average for the session, now faces resistance in the 11,440-540 zone, analysts said. Support for the index is seen at 11,360 level, The positive trend of the index remains intact, but Nifty50 needs to surpass the recent swing high ahead of its August series F&O expiry to commence the next leg of rally, Even on the weekly scale, the index has been respecting its five-week EMA for 12 consecutive weeks, which is now placed at 11,155 level. During this period, the index has not slipped below its 20-day EMA on the daily scale. The index continues to move higher by maintaining its bullish sequence of higher tops and bottoms. We expect it to retain this gradual up-move. 11,390-11,400 zone can extend the index gains to the 11,440-11,540 range, which is its gap resistance area. "If the bulls fail to push Nifty above 11,390 level, profit booking can drag it the 11,340-11,200 levels. The RSI on a shorter time frame chart has reached slightly overbought territory, which indicates that the uptrend may pause and cool off. On the weekly chart, the index formed a small bullish candle. It resembles a “Spinning Top”. It looks critical for the bulls to sustain above 11,362 level at least to retain the bullish bias. A close below 11,290 level can damage the bullish sentiment, thereby dragging down Nifty towards its 20-day exponential moving average (EMA) placed at 11,200 level. The Sensex closed at 38,220.39, down 394.40 points or 1.02 per cent. Global oil benchmark Brent crude was trading 0.71 per cent lower at USD 44.58 per barrel.

Transcript of STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT … · EQUITY WEEKLY NEWSLETTER 24TH AUG, 2020 STOCK...

Page 1: STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT … · EQUITY WEEKLY NEWSLETTER 24TH AUG, 2020 STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT Technical based Trading and investment call Entry-

Monday, 24TH AUG 2020

www.capitalways.com

EQUITY WEEKLY NEWSLETTER

24TH AUG, 2020

STOCK /COMMODITY/FOREX/WEALTH MANAGEMENT Technical based Trading and investment call Entry- Exit Trend Reversal+ Proper Stop loss

NIFTY: 11382.90(0.69%)

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Nifty index closed at 11382.90 Up 77.50 or 0.69 per cent. Nifty50 on Friday reclaimed the 11,350 mark, but formed a bearish candle on the daily chart, as the index gave up some of the opening gains. The NSE barometer, which stayed above its five-day moving average for the session, now faces resistance in the 11,440-540 zone, analysts said. Support for the index is seen at 11,360 level, The positive trend of the index remains intact, but Nifty50 needs to surpass the recent swing high ahead of its August series F&O expiry to commence the next leg of rally, Even on the weekly scale, the index has been respecting its five-week EMA for 12 consecutive weeks, which is now placed at 11,155 level. During this period, the index has not slipped below its 20-day EMA on the daily scale. The index continues to move higher by maintaining its bullish sequence of higher tops and bottoms. We expect it to retain this gradual up-move. 11,390-11,400 zone can extend the index gains to the 11,440-11,540 range, which is its gap resistance area. "If the bulls fail to push Nifty above 11,390 level, profit booking can drag it the 11,340-11,200 levels. The RSI on a shorter time frame chart has reached slightly overbought territory, which indicates that the uptrend may pause and cool off. On the weekly chart, the index formed a small bullish candle. It resembles a “Spinning Top”. It looks critical for the bulls to sustain above 11,362 level at least to retain the bullish bias. A close below 11,290 level can damage the bullish sentiment, thereby dragging down Nifty towards its 20-day exponential

moving average (EMA) placed at 11,200 level. The Sensex closed at 38,220.39, down 394.40 points or 1.02 per cent. Global oil benchmark Brent crude was trading 0.71 per cent lower at USD 44.58 per barrel.

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BANKNIFTY: 22307.00 (1.56%)

Bank Nifty index closed 22307.00 Up 342.75 or 1.56 per cent . The Bank Nifty opened gap up and headed towards 22,350. It finally closed 300.15 points or 1.36 percent higher at 22,299.60 and formed a small bullish candle on daily charts. For the week, the index gained 2.9 percent and formed a small bullish candle that resembled a Hammer pattern on the weekly scale, which indicated that declines were being bought. The banking index has seen three exhausted gap in the last three sessions but held above 22,000 and a move towards 22,400 zone is giving an early sign of bullish consolidation breakout. The Bank Nifty has to hold above 22,000 for an up move towards 22,500 and 22,750 while on the downside, immediate support is seen at 21,750 then 21,400 levels. The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that the central bank will come out with the resolution framework for all covid-19 related stressed accounts by 6 September. Banks can extend the moratorium by 3, 6 or even 12 months under the one-time restructuring. The RBI has allowed banks to restructure some loans to support economic recovery and help hard-pressed individuals, companies tide over the ongoing corona virus crisis. With production still to recover to pre-covid levels after lifting the lockdown, lack of demand, job losses and bad loans are expected to surge to the highest in 20 years after the loan moratorium ends on 31 August. The index, however, gained 1.7 percent for the week and formed a small bullish candle on the weekly scale, which resembled a Spinning Top on the weekly scale. Spinning top is often regarded as a neutral pattern that suggests indecisiveness in the market. It can be formed in an uptrend as well as in a downtrend.

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Recommendation Stock for the WEEK

Script Name – HEROMOTOCO FUT

Trend - UPSIDE Buy AT- 2996 Target- 3045 Stop loss– 2960

CANDELSTICK CHART

JUSTIFICATION

Price has gained momentum throughout the market. It has Bullish and script also has great momentum, script is ready for move upward after pullback. we see on chart script has great relative strength .There volume increasing day by day from last few days.

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Script Name – DRREDDY FUT Trend- Down Sell Below 4470 TARGET- 4380 STOPLOSS – 4515

CANDELSTICK CHART

JUSTIFICATION

MINOR TREND OF SCRIPT IS SIDEWAYS AND SCRIPT CREAT DAILY NEW LOWS AND WE SEEING IN CHART BULLS ARE NOT SUPPORTIVE TO STOCK AND LEVEL GIVEN BELOW THE BREAKOUT, SCRIPT IS OVER CONSOLIDATED; RSI IS ALSO GIVE INDICATAION FOR DOWNSIDE.

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