The stock market is creating gaps from the last month. Gaps denote uncertainty where the people are not sure of the correct direction of the market. In the last analysis, I told, there is a retail rally. Now, this rally is fizzling out. You have to understand one thing that trend is your friend till it ends at the bend. If we see the levels of the nifty, I think 8700 looks to be the next level for this market. There has been some buying by the FII and DII that were holding the market up. But the overall trend of the market is still bearish.

The one stock I am worried about is Reliance Industries. Despite bad results, the company-maintained an up-level due to some stake sales news. If we see, reliance is already coming to a sell zone now. After a big rally, profit booking may come. Fundamentals of this company are not good and giving only 10 percent a year.

Let’s have a look at the top ten stocks to understand the market.

Reliance: it is in the sell zone and making a double top

Bharti Airtel: In a lockdown, it is doing good. Data consumption is good and all telecoms industries are doing good in this period.

HDFC: It is weaker than the market and making a flag pattern.

HDFC Bank: it is another expensive stock and broken the trend and moving down.

Hinduniliver: it is a very expensive stock. Somebody asked me at what price, I want to buy this stock. For me, 1000 will be a fair price for this stock.

ICICI Bank: It also started breaking down the trendline towards the downside.

INFY: In IT industries, I don’t see any downside.

TCS: It is having the same scenario as INFY.

ITC: It is another weak stock

Kotak Bank: It also started forming a wedge and is also forming a continuation pattern.

Based on the top 10 stocks, the market looks bearish and Banknifty is weaker than the Nifty. If you want to make a stable income or want to create a passive income in the market, learn it properly, and trade safely.