Sep 18,2020-Nifty unlikely to see strong move; avoid large position.

Following overnight weakness in the US market and the prevailing weakness across Asian markets, the Indian market saw a lower opening.

Nifty is trapped in a practically no-trade zone, in which it has managed to keep its head above the crucial 11,430 level. As long as Nifty stays above 11,430 level, it may continue to see consolidation, but will not see any major weakness.

The market may see a jittery start on Friday. The 11,550 and 11,590 levels will act key resistance, while supports will come in at 11,450 and 11,400 levels.

All in all, we recommend avoiding any aggressive position in this market, which is currently consolidating and the possibilities of it moving higher are more as long as Nifty manages to keep its head above 11,430 level. However, unless the previous high point of 11,620 is breached, we will not see any strong move. We suggest staying stock specific and avoiding large exposure on the higher side.

From the risk-reward point of view, it would be rewarding to focus more on defensive stocks. A cautious view is advised for the day.

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