May 11,2020 Trade Plan- Don’t chase any up-move ; Nifty50 precariously poised

Nifty started Friday’s session with a marginal loss and remained sideways throughout the session. It moved within a 100-point range, which was narrowest since February 20, 2020.

Nifty (9252) ‘Technically Nifty can be viewed as down unless it starts to trade above 9400…8981-8700 not ruled out’ the opened near our resistance and traded down to close in the green solely due to RIL…technically 8981 is still possibility & stiff resistance exists at 9400…

The index has been forming lower highs since the last four sessions and needs to negate that for a bounce-back, else weakness could persist. Looking at the overall chart structure, we maintain our negative to range-bound stance and expect Nifty to fall towards 9,000 and then 8,800 levels in the coming days. On the upside, the immediate resistance is placed at 9,350 and then 9,450-9,500 zone.

India VIX moved down 3.20 percent to 39.93 level. However, the volatility index negated the formation of a lower high-low sequence of the last five weeks, and thus, we may see further pressure on any bounce in the market.

Nifty Bank (19353) ‘Technically stiff resistance exists at 20000…19042-18351 not ruled out’ the Nifty Bank opened near our resistance and traded down to close in the red…technically 19042-18351 is still possible and stiff resistance exists at 20000…

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