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June 09,2020 Trade Plan-Nifty to resume rally only above 10,300-10,350 zone

Nifty has faced a hurdle precisely at the confluence point of two resistance levels; one in the form of a rising trend line of the current channel, and second that existed at the 100-DMA, which currently stands at 10,298. The volatility, which was at one its lowest levels in the recent past, saw a mild surge as volatility index, INDIA VIX, rose 3.37 percent to 29.6475. The 100-DMA level has now become an immediate resistance point for the market on a closing basis. The up-move shall temporarily halt unless Nifty moves past this level.


Tuesday’s session is likely to see a tepid start to the day, with the 10,200 and 10,235 levels acting as key resistance. Supports will come in at 10,100 and 10,000 levels.


If we take an immediate short-term view, Nifty is likely to take a breather at the current level. The 10,300-10,350 zone has now become an important resistance point for Nifty on a closing basis. We are less likely to see any major resumption of the up-move unless Nifty goes above this zone, but the index will become vulnerable to bout's profit-taking at higher levels. A cautious approach is advised for the day.


Nifty Bank (21187) The next logical target would be 22418 as long as 20300 holds’ the Nifty Bank opened at the high and traded down to close in the red…technically now the range is 20542 and 22418
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