Sep 07,Nifty may weaken some more; 11,430 level is key..

There may be some mild incremental weakness now as we step into a new session. US markets ended negative on Friday. However, they closed significantly off their lows. This means we can expect the domestic market to attempt and gain some stability and try a mild technical pullback. However, Nifty has failed to break out of the double top formation, which it tried when it took out the 11,430 level. This means the 11,430-11,500 zone remains a crucial and resistance.

All in all, we might see mild downsides, but at the same time, Nifty may also attempt a technical pullback. We expect the 11,430 level to remains important in the immediate term. It would be crucial for Nifty to move past the 11,430 mark as soon as it can to avoid incremental weakness. It is also expected that volatility will remain at elevated levels over the immediate short term.

We recommend staying light on the overall positions and avoiding aggressive shorts or longs at any level. A broad rangebound consolidation is expected over the coming days.

Nifty (11334) 11661 has become a strong resistance to deal with and the downside is open’ the Nifty opened with a bang down…traded up and finally traded down and has closed in the red and in the process generating a weak price bar…technically now 11500 is a stiff resistance and the downside is open…

Nifty Bank (23012) 24000 is a stiff resistance to deal with downside is open’ the Nifty Bank unfolded as expected and has traded weak and closed in the red…technically now 23400 is a stiff resistance to deal with and the downside is open…

1 view0 comments