June 12,2020 Trade Plan- Any pullback to remain capped; Shorts building up in Nifty futures.

Nifty gave up the psychologically important 10,000 level and went on to close at 9,902 with a net loss of 214.15 points, or 2.12 percent.

The maximum Put open interest, which was at 10,000 level at the start of the session, gradually shifted to 9,900 markets and this kept Nifty from breaching this level on expiry. Volatility rose marginally, as India Volatility Index, INDIA VIX, went up by 0.76% to 29.6600. Thursday’s session confirmed the 10,250-10,350 zone as a strong resistance for Nifty in the immediate short term.

This zone will now become a key resistance for the index for the coming days. Nifty’s ending near the low point of the day might result in some more downside. However, given the fresh shorts, we will see intermittent pullbacks as well. In Friday’s session, we are likely to see Nifty to face overhead resistance at 9,950 and 10,030 levels, while supports should come in at 9,860 and 9,805 levels

In the current technical setup, Nifty may see some mild pullback from the current level. However, it will remain limited in its extent as Nifty has shifted its resistance zone lower to 10,250-10,300 levels. In the event of any up-move, moderate purchases may be made with vigilant profit protection at higher levels.

Nifty Bank (20525) ‘Technically now 20542 is a support to work with and good as long as that holds’ the Nifty Bank breached the support and closed slightly below it…technically 20011 is possible…resistance exists at 21250…
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