June 02,2020 Trade Plan-Use every rise to protect profit, Nifty50’s risk-reward gets skewed.

Including Monday’s rise, Nifty has risen nearly 800 points in four consecutive sessions. The risk-reward ratio in this market has become extremely skewed. Also, the Index has shown signs of halting its up-move near the crucial resistance point. Given this reading, there are higher chances of the market seeing some consolidation or mild profit-taking amid the risk-on environment still in place.

In Tuesday’s session. Nifty (9826) Now our target of 9657 is within reach and possibly 9800 as long as 9390 holds’ the nifty achieved our target and has closed in the green…technically 9971-10000 would be the next target as long as 9700 holds…

All in all, despite the strong liquidity-driven push, Nifty has not yet reversed its trend. It has tested a serious decade-old pattern resistance level that it violated during the recent downtrend. Unless Nifty penetrates this rising trend line pattern resistance, the uptrend is likely to get disrupted. We reiterate using all future up-moves to protect profits at higher levels and approaching the market with a high degree of caution until it consolidates its current up-move.

Nifty Bank (19960) Our target of 19536-21110 still stands valid as long as 18962 holds’ the Nifty bank too achieved our targets and has closed in the green…technically now the crucial support to watch would be 19536 and upside if it stays above 20110 could be 20542…
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