Sep 10,2020-Weekly F&O expiry to dominate trade, limit exposure.

What we saw in the past couple of days in form of a sharp correction was mean reversion of the market. The market, which had deviated too far and got overstretched on key technical indicators, reverted to mean through a sharp correction.

On Wednesday, Nifty bounced from near the 50-DMA, which currently stands at 11,154, and this remains crucial support on a closing basis.

On Thursday, Nifty is likely to see a shaky start. Any pullback in the Dollar Index may have some mild effect on the domestic market, though it will be good for IT stocks. Thursday’s session will see Nifty hit the key resistance points at 11,310 and 11,385 levels, while support will come in at 11,230 and 11,180 levels. All in all, Thursday’s proceedings are likely to be dominated by the expiry of weekly options.

There are chances that the index will oscillate in a defined range for the day. We recommend avoiding any excessive exposure. It would be prudent to ward off weekly expiry through limited exposures and guard profits strictly on either side.

Nifty (11317) Nifty still looks weak unless11450 is not taken out on the upside…downside open’ the Nifty unfolded weak as expected and has closed in the red…technically the Nifty still looks weak unless 11450 is not taken out… however a slide to 11150-11000 is a possibility where some kind of short covering is not ruled out…stiff resistance is around 11500

Nifty Bank (22744) sill looks down unless 23100 is not taken out…downside is open’ the Nifty Bank unfolded weak as expected and has closed in the red…technically looks like a support emerge near 22000 zones and resistance exists at 23000

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