Wkly Market Analysis Journal on Nifty BankNifty for Dec 18th 202
Nifty and BankNifty both closed almost at high point of the week gaining more than 2% from previous week’s close forming a bullish candle again. Price action is very strong with majority of the support coming from IT stocks in Nifty along with Banking stocks.
* Nifty and BankNifty saw buying interest from FII’s aggressively along with usual DII buying. Long addition have increased compared to previous week suggesting strong buying interest.
* Futures Open Interest saw good addition with increase in Price suggesting uptrend would continue
* Stocks Advance Declines were towards Advance side suggesting buying.
* Index bounce from day’s lows almost on daily basis suggesting buy on dips.
* Most commodities also in up move overall sentiment is positive.
Caution :
On daily basis both Nifty and BankNifty are in overbought zone with RSI above 80 but weekly charts suggest otherwise and most stocks except Banking are not yet in overbought zone. So Nifty might continue up move slowly and BankNifty might consolidate or under perform this week. Wait for day’s high break to go Long on Nifty and don’t even think of Shorting even on small timeframes.
* Nifty and BankNifty saw buying interest from FII’s aggressively along with usual DII buying. Long addition have increased compared to previous week suggesting strong buying interest.
* Futures Open Interest saw good addition with increase in Price suggesting uptrend would continue
* Stocks Advance Declines were towards Advance side suggesting buying.
* Index bounce from day’s lows almost on daily basis suggesting buy on dips.
* Most commodities also in up move overall sentiment is positive.
Caution :
On daily basis both Nifty and BankNifty are in overbought zone with RSI above 80 but weekly charts suggest otherwise and most stocks except Banking are not yet in overbought zone. So Nifty might continue up move slowly and BankNifty might consolidate or under perform this week. Wait for day’s high break to go Long on Nifty and don’t even think of Shorting even on small timeframes.