May 29,2020, Trade Plan- Stay stock-specific, Nifty bounce may continue.

The domestic equity market on Thursday saw an extension of the pullback on the expected lines. Nifty saw a better-than-expected opening once again, Expiry of May series derivative contracts and weekly options orchestrated the market move during the session.

Volatility also declined sharply as volatility index INDIA VIX fell another 4.01 percent to 30.0175. Nifty has risen over 450 points in the past two sessions; which increases the possibility of some consolidation at higher levels.

On Friday, Nifty is likely to face resistance at 9,525 and 9,565 levels, while supports will come in lower at 9,410 and 9,365 levels.

All in all, the market is showing signs of sustaining the short-term momentum on the upside. We recommend avoiding shorts with every rise and approaching the market individually in a highly selective and stock-specific manner. The near-term indicators show the upside momentum may persist for some time. However, consolidation at current levels cannot be ruled out, given the market’s rise in the last two sessions. We recommend avoiding large positions on either side and following the up-moves with a stock-specific approach.

Nifty Bank (19170) Support exists at 17831’ the Nifty Bank unfolded strongly as expected and ahs closed in the green…technically now 19536-21110 is possible as long as 18500 holds…
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