June 15,2020 Trade Plan-make-or-break point at 100-DMA, Nifty to see jittery start

It is important to note that Thursday’s session had seen the addition of fresh shorts in the system. And Friday’s session saw a massive short-covering from the lower levels after the gap-down start, which fuelled the big recovery. It is also noteworthy that Nifty futures have shown a net decline in Open Interest, and this makes the bout of short-covering more evident.

On Monday, Nifty is again likely to see a bit jittery start. The 10,035 and 10,090 levels are likely to act as key resistance while supports will come in at 9,910 and 9,815 levels.

Nifty (9973) Now 9747-9568 would be the next support and stiff resistance exists at 10150’ the Nifty opened at our support and climbed up to close in the green…technically now 10029-10100-10161 as long as 9747 holds…

We reiterate that the massive pullback seen in Friday’s session should not be misunderstood for market strength. The recovery was on account of a massive short-covering from lower levels. Unless Nifty moves past the 100-DMA, which now stands at 10,206, and closes above that level, it will remain vulnerable to sharp selloffs at higher levels. We strongly suggest using all up-moves to exit profitable positions and adopting a cautious and stock-specific approach on the market for the day.

Nifty Bank (20655) Technically 20011 is possible…the resistance exists at 21250’ the Nifty bank opened below our support and climbed up to close in the green…technically now 20936-21139-21319 is possible as long as 20011 holds…
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