Greetings, fellow investors!
In the past few months, I have covered quite a few new-age stocks. For example, we have focused on Zomato (NS: ZOMT ) many times, which helped several avoid the fall to Rs. 50. After which the uptrend was caught, as shown via my articles, Twitter and YouTube. Thus, I am now turning my attention to two other new-age stocks—Nykaa and Policy Bazaar. However, in this article, I will only focus on Nykaa (NS: FSNE ). While for Policy Bazaar, I have attached a YouTube video on it. So do check it out.
Now coming to Nykaa. The stock caught my interest as it is at a critical point on the daily chart. I say this to the untrained eye: it will seem as if the stock is holding on to the simple support of Rs. 130; hence, all seems to be well. However, that is far from the truth.
This is because, in my opinion, the stock is gearing up for a dead cat bounce, which will help trap a lot of investors. This is because in the short term, we may have a temporary rise to the quant resistance zone at Rs. 140. However, once we reach this resistance zone, I expect the equity to resume its downward move to the quant support levels at Rs. 125 and Rs. 112. I say this as the chart’s structure is still weak. Plus, when we look at the volume buildup on the weekly chart, we see that it is still severely bearish. This is as the bearish element of the volume stands at roughly 70%, which signals that all up moves will be short-lived.
In summation, Nykaa’s current market stance remains weak. Thus, I believe that traders looking at this stock must exercise severe caution. This is because the bears have the stock under their control. Moreover, I expect this to continue until we see a change in the weekly volume breakdown. Lastly, check out the video of Policy Bazaar to know what to expect in the equity. Also, in it, I have covered Adani Power (NS: ADAN ).
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.
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Sir did you check the quality of your youtube video before uploading it?Like 1