Oct 09,2020-Nifty showing signs of fatigue, avoid aggressive bets.

On the day of weekly options expiry, the market played out much on the expected lines. In the previous technical note, we had mentioned that the market may continue to inch higher, but at the same time, may also face some selling pressure at higher levels.

Despite the relentless up move, the market has now shown a clear sign of fatigue and reflects high possibilities of taking a breather in the near term. Nifty has now shifted its support zones higher at 11,400 and 11,450. With the new support zone, we expect the market to stay in a broad range now with limited upsides in the near term. The levels of 11,850-11,900 now make up a strong resistance zone, marking the upper end of the newly-formed broad consolidation zone.

Friday's session is likely to see the levels of 11,860 and 11,910 acting as resistance points, while support will come in at 11,750 and 11,710 levels.

Given the present technical setup, it would be prudent now to avoid any aggressive purchases. Any new purchases should be kept strictly limited to defensives. There may not be any major downside in the market, but some consolidation and profit-taking moves from these levels cannot be ruled out. We recommend traders to approach the market with great caution. Excessive leveraged exposure should be avoided, and profits should be guarded vigilantly. A cautious approach is advised for the day.

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