June 17,2020 Trade Plan: Nifty50 likely to see sporadic rallies; Stay cautious.

The market is likely to stay jittery for a few sessions and move in a wider-than-normal trading range. An important thing to note is that despite the wild swings and with Nifty moving past the 10,000 level momentarily, the maximum Call open interest continued to be concentrated at strike price 10,000 and it did not shift higher or lower. This indicates that unless a tactical shift occurs in options, the 10,000 marks will continue to pose resistance to Nifty. The index’s price action against this level will be crucial to watch.

The 9,980 and 10,040 levels will act as immediate overhead resistance points, while supports are likely to come in much lower at 9,755 and 9,660 levels. Upsides are expected to remain capped, but any move on the downside is likely to make the trading range wider than usual.

Given the current technical setup, Nifty will continue to experience sporadic up-moves. At the same time, the up-moves, if any, will remain limited in its extent. The downsides, as and when they occur, will make the trading range wider. We reiterate staying away from creating aggressive bets on either side, approaching the market with caution, and protecting profits vigilantly at a higher level.

Nifty Bank (20297) Technically a slide to 19456 is a possibility and stiff resistance is at 20397’ the Nifty Bank opened near our resistance and traded lower to see support near our support to bounce back again and close in the green…technically now upside to 20936-21139 is a possibility as long as 19456 holds..
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