Sep 14,2020 Nifty may see stable start, but every cue is calling for caution.

In listless trade, the domestic stock market spent the whole of Friday’s session moving in a narrow, capped range before ending on a flat note. Nifty didn’t show the directional bias for the entire session and kept on going in and out of the positive territory.

Nifty has currently placed a notch above the double top resistance point at 11,430 level. With a closing above this level, the index has attempted to take out this level again. While this attempt remains in force, it would be crucially important for the index to keep its head above the 11,430 level as any slip below 11,400 level would mean a failure to take out the double top resistance and slip below that point.

All in all, the F&O figures suggest some positive move in the market in the initial hours. As we progress, the weekly levels will take over the larger technical structure. F&O figures suggest Nifty futures have added over 7.02 lakh contracts or 7.03% in the OI. This means in the event of any corrective decline, the participants may face discomfort at lower levels.

However, we will definitely need to remains cautious if Nifty slips below the 11,400 level and stays below it. We recommend shifting focus to defensives like IT, pharma, and consumption stocks for a safer approach to the market.

Nifty (11464) the pattern now is suggestive of strong support at 11350 and up-move to 11562 is a possibility’ the Nifty unfolded strongly as expected and has closed in the green…technically I would maintain that 11562 is still a possibility as long as crucial 11417 holds…

Nifty Bank (22480) the Nifty Bank still looks weak and needs to stay above 22300 if it can climb to around 23000’ the Nifty Bank has traded within the range and closed flat for the day…technically I would look at crucial support at 22200 and trade long and if 22200 goes then we can see it slide to even 21750…but it would good place to buy if it trades above 22700 for a target of beyond 23000…tricky trading Nifty Bank…

1 view0 comments