The bears were into the picture throughout the week as market players were cautious due to the weak Asian peers over rising concerns of delta virus variant.
Over a week, the benchmark index fell almost 1 percent to close at 15722.20 levels, while Bank Nifty dragged more than 1.5 percent to settle at 34809.90 levels.
On a sectoral front, all the indices showed profit booking for over a week and ended at negative territory, except Nifty Pharma and PSU index, where the Pharma have contributed more than 3 percent gains on a weekly basis.
On a weekly basis, the top five gainers were Dr Reddy, CIPLA, HUL, Sun Pharma, and Tata Motors, while the top losers were Bajaj Finserv, Britannia, Ultra Cement, IOC and JSW Steel.
Technically, the index has taken good support at Lower Bollinger Band formation and pulled back further. Moreover, the stochastic has indicated positive bias although the MACD is still showing some weakness with negative crossover.
On an hourly chart, the index has moved above the 21 HMA and also formed like Rounding Bottom, which points to further recovery for the near term. At present, the nifty seems to have resistance at 15,915 levels while immediate support comes at 15,600.
Top gainers for week ended July 2, 2021
Dr Reddy has given a cup and handle breakout on the daily chart and has settled above the 21-days moving average indicating a strong up trend for the near term. The convergence lines of the Ichimoku cloud have crossed above the divergence line, which indicates bullishness. The further clouds of the Ichimoku indicator also indicate a positive trend. The ADX has settled at 19 levels, which indicates a decent amount of volatility in the price action of the stock. The stochastic indicator has climbed up in a one-way direction, which indicates strength. The stock has a support of 5200 levels, whereas immediate resistance is at 5650 levels. Overall, the trend looks bullish and further upside might be seen in the upcoming days.
Cipla closed negatively on Friday's session and slipped below the upper Bollinger Band. The ADX has closed at 18, indicating an average volatile session in the stock price. The Chaikin Money Flow is entering the negative stage which indicates a profit booking in upcoming trading sessions. The stochastic indicator has given a negative crossover on the downside, which indicates a possible down trend for the near term. The stock has a nearest middle Bollinger Band support of 962 and a resistance of 990. Overall profit booking might be seen in the upcoming session.
Tata Motors has settled above the 15-day Moving Average, which indicates strength for the near-term. The stock has closed above the clouds as well as above the convergence line of the Ichimoku Clouds indicator, which indicates a further upside move. The ADX has closed at 26 levels, which indicates good volatility for the trading. The stochastic indicator has also given a crossover on the upside which indicates a north move for the stock. The stock has a nearest support of 333 and a resistance of 349 levels. Overall, the stock is on a breakout for a target of 360.
On a daily Chart, the stock has formed a Hammer Candlestick with the support of its extended trendline, which indicates an upside movement in the counter. Furthermore, the stock has been trading in Flag Pattern, which suggests upside movement. On a daily chart, the stock has been trading with a positive crossover of 21*50 Days Moving Average which can be considered a Bullish Crossover which shows a Bullish movement in the counter. On an hourly chart, The True Strength Indicator has given a positive crossover on the upside where it is indicating good strength for the stock to have a movement on the upside. For upcoming days the stock has good support at 2430 while resistance comes at 2530, crossing above the same can show upside movement.
On a weekly chart, the stock has given a breakout of its previous resistance levels with volume activity which suggests strength in the counter for the upside. Moreover, the stock has given a breakout of the rising trendline and sustained above the same can show strength in the counter. Furthermore, the stock has formed a bullish marabozu candle, which further adds strength to the counter. Momentum indicator Stochastic, K percent is trading above D percent, which points out strength in the counter. On a daily chart, the stock has been trading above all the Moving Average, which points for a bull run in upcoming days. For upcoming days, the stock is looking bullish and support at 4,240 while it is trading near a lifetime high.
Top losers this week
On the daily chart, after a long bullish rally, Britannia has given a healthy correction till the level of 50 percent Fibonacci Retracement level. In addition, the stock has been taking support of 200 Exponential Moving Average and prior demand zone, which indicates a bullish reversal in the counter for the medium term. Moreover, on an hourly chart, an oscillator Stochastic RSI suggested positive crossover, which is again an upside confirmation in the near term. Furthermore, the stock has formed Dragonfly Doji candlestick with spurt volume, which indicates a bullish set-up in the counter. The support lies at 3,470 while the resistance lies at 3,706 levels.
On four hourly charts, Bajaj Finserv has given a breakdown of the Rising Channel with spurt volume and trading below the 50 Exponential Moving Averages, which indicates bearish reversal for the near future. The stock has formed Bearish Marubozu candlesticks, which is again a downside confirmation. In addition, an oscillator Stochastic RSI suggested negative crossover. Moreover, a momentum indicator RSI (14) is at an overbought zone on a weekly time frame and witnessed divergences which point to a further reversal in the counter. Furthermore, the ADX also supports the current trend. The support lies at 10,800 while the resistance lies at 12,520 levels.
On a weekly basis, the stock has shown profit booking from the top but faced support from 21WMA, which suggests sustained above the same can show a bounce back in the stocks. Moreover, the stock has formed a dark cloud cover candlestick pattern which points out weakness for the near term. In addition, the stock has also slipped below 21-days SMA. A momentum indicator MACD and Stochastic suggested negative crossover on the daily time-frame, which confirmed a bearish move for the upcoming sessions. On the downside, the stock may test the support at 6,500 marks while resistance comes at 6,970 levels.
On a weekly basis, the stock slipped more than 5 percent from its prior week close to settle at 27014.90 levels. On the daily timeframe, the stock sustained below Lower Bollinger Band formation and Ichimoku Cloud, which indicates a bearish trend in the counter. Moreover, the price also moved below the 100 days SMA, which suggests a lower trend for the long term. A momentum indicator RSI (14) & MACD also witnessed negative crossover on the daily chart. So, based on the above structure, we are expecting more downside moves towards the level of 26,000. On the lower side, there is support at around 25,700 while resistance comes at 28,400 levels.
The stock was in the corrective mode as we saw the continued downside move for over a week, but on Friday's session, the stock showed a slight recovery and closed at 108.45 levels with 0.84 percent gains. The stock has also taken immediate support at Lower Bollinger Band formation, which suggests further pull back in the counter. Moreover, the stochastic indicator also showed positive crossover, which confirms reversal for the near term. Hence, we are recommending buy on dips strategy in IOC for the near term.
(Sumeet Bagadia is Executive Director, Choice Broking)