May 28,2020 Trade Plan-Chase rally cautiously, Nifty’s upward bias strong.

In an unusually strong session, the domestic stock market witnessed a massive surge fuelled by strong short covering, and this helped Nifty to end the day on a robust note

There is weekly options expiry as well as monthly derivative series expiry on Thursday. So Wednesday’s session was aided by both weekly and monthly derivatives expiry dynamics. Nifty’s behavior against the 9,300 level will be extremely crucial.

The strike price 9,500 has the concentration of the maximum Call open interest followed by 9,300 level.

If Nifty is able to stay above 9,300 level, it may attempt an extension of the up-move. If it slips below 9,300, then this level may act as resistance ..

On Thursday, Nifty will face resistance at the 9,365 and 9,425 levels, while supports will come in at 9,260 and 9,175 levels. The trading range is expected to remain wider than usual.

Volatility continued to decline as indicated by volatility index INDIA VIX, which came off modestly by 0.63% to 31.2775. The market may attempt an extension of the up-move or may consolidate at higher levels. In any case, Nifty’s action against the 9,300 level would be crucial for today.

It would be essential for Nifty to keep its head above the 9,300 mark. Otherwise, some profit-taking may creep into the market. We recommend chasing the up-move, if there is any, in a cautious way and protecting profits at higher levels.

Nifty Bank (18701) said ‘the Nifty Bank is sluggish and there exists a resistance at 17830 and support exists at 16116 zones’ the Nifty Bank bounced back and closed in the green…and can climb to around 19732…strong support exists at 17831…

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