May 22, 2020 Trade Plan-Nifty50 likely to turn cautious ahead of a long weekend.

The expiry of weekly options kept Dalal Street in a highly defined range on Thursday. Yet, the indices extended their up-move and ending the day with modest gains. However, Call and Put writing at strike prices 9,100 and 9,000 ultimately kept the market within this range. Nifty came off its highs in the second half of the session

Nifty (9106) Some more short covering is not ruled out up to 9390…support 8960’ the Nifty saw some up move but looked like a meek up-move…technically looks like resistance in the upper regions and so selling in the upper regions is not ruled out…stiff resistance exists at 9390…supports at 8981…

Nifty is likely to face resistance at 9,145 and 9,190 levels on Friday. Supports will come in at 9,050 and 8,960 levels. We have an extended weekend this time, as Monday is a trading holiday. There are possibilities that Nifty will wear a cautious look ahead of Friday's close because of the extended weekend. We reiterate the need to approach the market cautiously. It would be prudent to keep chasing the up-move, if any, through defensive and resilient sectors and stocks and protect profits vigilantly at higher levels.

Nifty Bank (17735) Stiff resistance exists at 18351’ the Nifty Bank bounced back as expected and has closed in the green…technically now 18351 is possible as long as 17368’ the Nifty Bank saw some selling pressure in the upper regions near our resistance and closed mildly in the red… technically 18351 is still a resistance…slide to 17368 is a possibility…
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