July 06, 2020, Trade Plan: Don’t chase the rally blindly, use it to protect profit, Nifty resilient

The coming week will be very crucial for the market. On Friday, Nifty halted near the confluence point of two important pattern resistances. Volatility continued to diminish further and volatility index INDIA VIX declined by further 2.79 percent to 25.7675.

Monday’s session is likely to see a quiet start. With the US markets shut on Friday, there will be no overnight cues to deal with. The 10,645 and 10,680 levels will act as overhead resistance while supports will come in lower at 10,565 and 10,470 levels. Any move on the downside is likely to widen the trading range.

All in all, Nifty is displaying exemplary resilience to any corrective move. All corrective moves have either stayed intraday or very shallow in nature. However, given the current technical setup, it would not be prudent to chase the rally blindly even if the same is fuelled by massive liquidity push. The current setup warrants that one chases the momentum with a lot of caution while adopting a stock-specific approach. Vigilant protection of profit is advised on every minor move on the upside.

Nifty Bank (21852) Still maintain that 22432 is a stiff resistance and downside to 21352 is a possibility…the Nifty Bank looks trapped and so crucial support is 21352 and resistance exists at 22432…

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