Sep 21,2020-Upside limited for Nifty50 now; stick to defensives.

In a very disappointing session, Indian equities fell on Monday in line with the weakness in the global market and ended with a deep cut.

Nifty drifted below the 11,430 level and this meant the attempt to move above the Double Top pattern resistance has again miserably failed. This means Nifty has shifted its resistance lower to 11,430 level. Also, Nifty has tested its 50-DMA, which currently stands at 11,273. The index has closed a notch below this point. Unless it crawls back above this point, it may invite some incremental weakness.

All in all, the market, in general, is likely to see limited upside going ahead. Any up-move we may see would be just technical pullbacks. Importantly, until the 11,430 level is taken out again, it will act as immediate short-term resistance for Nifty going forward.

All up moves will face a strong resistance near this level. Nifty will require a strong conviction to move past this level again. We recommend avoiding leveraged exposures. It is strongly suggested to stick to defensives and low-beta stocks while adopting a cautious view on the market.

Nifty (11251) ‘technically now 11550 is stiff resistance to work with and downside to 11425-400 is a possibility’ the Nifty unfolded as expected and achieved or target and has closed in the red…technically now the stiff resistance exists at 11425 and the downside is open…next strong logical target would be 11000…

Nifty Bank (21367) ‘technically now the resistance is around 22250 zones and downside to 21500 is a possibility’ the Nifty Bank unfolded as expected and achieved our target and has closed in the red…technically now 21900 is stiff resistance to deal with and the downside is open 20675-19600 is a possibility…

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