May26,2020 Trade Plan- No consensus on Nifty direction.

Friday’s session on Dalal Street started with the surprise rate cut by RBI, which advanced the June monetary policy meeting to bring down the repo rate by 40 basis points. The market remained rangebound in initial trade as the markets awaited RBI’s press conference. But the rate cut did not enthuse the market and a bleak growth outlook that the central bank presented further depressed sentiment.

The previous session had seen Nifty form a lower top and bottom on the daily chart. Volatility also declined modestly, as the volatility index, INDIA VIX, declined 1.84% to 32.37775.

On Tuesday, when Nifty opens after Monday’s trading holiday, the 9,095 and 9,130 levels are likely to act as important resistance points, while supports will come in at 9,000 and 8,935 levels.

All in all, Nifty is showing a lack of consensus and conviction in any direction. This makes the market more vulnerable to the higher side. Even if the Nifty sees some upside momentum, it is likely to face stiff resistance at higher levels and may remain prone to profit-taking. For the upside momentum to sustain on the higher side for some time, One must adopt a cautious approach for the day.

Nifty Bank (17279) 18351 is still a resistance…slide to 17368 is a possibility’ the Nifty Bank has resistance at 18831 and slide to the recent low of 16116 is a possibility too…
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