Sep 16,2020-11,430 level key for Nifty 50 to log incremental gains.

The bulls refused to let go of the market off their grip and the benchmark indices resumed their surge on Tuesday. The start to the session was a bit jittery; Nifty opened with on a decently positive note but pared all the morning gains by late morning to trade flat near the previous closing.

The 11,500 level saw maximum Put writing on Tuesday, while there was significant short covering at strike prices 11,400 and 11,500. Nifty has not only been able to stay above the 11,430 level but also attempted to move past the 11,430-11,500 zone. As long as the index remains above the 11,430 level, the risk-on approach will sustain for some more time, although the risk-reward ratio will become more unfavorable with every rise.

All in all, there are chances that we might see incremental gains as long as Nifty remains above the 11,430 level. However, this will also translate into a riskier trade setup, as the risk-reward ratio would start getting unfavorable at higher levels. However, the present technical setup signals you to avoid aggressive shorts while continuing to follow momentum cautiously. Have trailing stop losses to protect profits at higher levels. A cautious approach is advised for the day.

Nifty (11522) ‘technically now if Nifty slides then a 11350-250 is not ruled out…stiff resistance exists at 11490’ the Nifty climbed instead and has closed near our resistance…technically now 11562 is not ruled out and beyond that to 11616 as long as 11460 holds…

Nifty Bank (22466) ‘technically downside to 22000 a very strong support or 21500 is a possibility…stiff resistance exists at 22700’ the Nifty bounced back due to very strong support at 22000 and has closed in the green…technically now 22700 needs to be crossed if it has to climb to around 23000…support exists at 23300…

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