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Published on 21/09/2020 4:39:20 PM | Source: GEPL Capital Ltd

Weekly Technical Outlook On 21 Sep 2020 By GEPL Capital

Posted in Market Outlook| #GEPLCapital Ltd #Market Outlook

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Bullish SECTORAL INDEX :- NIFTY PHARMA: 12320.90 weekly change (8.9%)

Observation

* NIFTY PHARMA witnessed a stellar week, and ended with a strong bullish candle and a gain of (8.9%)

* NIFTY PHARMA is the only index that has outperformed the NIFTY by a huge margin. Currently it is almost 100% off the March 2020 lows.

* The long term moving averages on the daily time frame are as follows 20 Day SMA (11454), 100 Day SMA (10437) the 200 Day SMA (9248). Currently the prices are placed above all the above mentioned moving averages.

* The RSI (75.88) plotted on the weekly chart has been forming a higher high higher low pattern and has been moving higher as the prices move higher, indicating that the bulls are dominating the trend.

* The key levels to watch for going ahead are 13320 (38.2% extension level of the rise from 6242-12045) followed by 13920-14000 (50% extension level of the rise from 6242-12045 and a April 2015 high)

* The crucial support levels are 11186 (Weekly low) followed by 10350 (1st April 2016 low)

 

Bullish Sector - NIFTY FINANCIAL SERVICES weekly close 10746.80 (-2.0%)

Observation

* The NIFTY FINANCIAL SERVICES has been forming a lower low lower high pattern for the past 3 weeks, after forming a dark cloud cover near the 100 Week SMA.

* In the last week the index underperformed the NIFTY and ended the week with a loss of (-2%).

* On the long term moving averages on the daily time frame are as follows 20 Day SMA (11177), 100 Day SMA (10528), 200 Day SMA at (11686), Currently the index is placed below the 200 SMA and the 100 SMA but remains above the 20 SMA.

* On the Indicator front the RSI (47.12) plotted on the weekly time frame has broken below the 50 level and also a upward slopping trend line and is moving lower towards the over sold zone as the prices move lower indicating that the bears have taken control of the trend.

* The key levels to watch for on the upside are 11042 (Weekly high) followed by 11470 (24th July 2020 high).

* The crucial levels on the downside are 10500 (38.2% retracement level of the rise from 7984-11986) followed by 10000 (50% retracement level of the rise from 7984-11986).

 

GMRINFRA: 25.75 weekly change (5.3%)

Observation

* BIOCON has been forming a higher high higher low pattern since March 2020 low.

* This up move has taken the stock from 235.55 to 463.90. Currently the stock is 96.94% off the march lows.

* The long term moving averages in the daily time frame are as follows 20 Day SMA (416), 100 Day SMA (393) the 200 Day SMA (346). Currently the prices are placed above all the major averages.

* The momentum indicator RSI (71.73) plotted on the weekly chart has manages to remain above the 50 mark and has been forming a higher high higher low pattern as the prices move higher,

*  The immediate resistance is placed at 480 (50% extension level of the rise form 235.55-446.95) followed by 503.90 (61.8% extension level of the rise form 235.55-446.95)

* The key level to watch for on the downside are 426.35 (weekly low) followed by 387 (28th August 2020 low).

 

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