Search

Sep 23,2020-Avoid aggressive shorts, take cautious bets.

In a technically interesting session, the domestic equity market behaved as expected on Wednesday. After opening on a strong note, Nifty attempted a pullback but faced strong selling pressure near its 50-DMA.


Nifty is likely to have a stable start on Thursday. The levels of 11,210 and 11,245 may act as resistance points while the support will come in at 11,060 and 11,000 levels.


Thursday is also the monthly derivative expiry along with the usual weekly options expiry. The 11,000 level holds the maximum Put OI and it is unlikely that Nifty goes below this point unless something goes wrong drastically. On the other hand, the highest Call OI is at 11,300 level. We expect Nifty to oscillate in this range.


It would be necessary to keep a keen eye on the US Dollar which is currently in the process of a mild technical pullback. While avoiding aggressive shorts, a continued cautious outlook is advised for the day.


Nifty (11132) Nifty still looks weak as long as 11230 is not taken out and a downside to 11000 is still a possibility’ the Nifty unfolded as expected opened near 11230 and saw the low near our 11000 support and has closed marginally in the red… technically I would maintain that 11000 is a strong support zone to work with and upside to 11400 is a possibility…


Nifty Bank (21179) Nifty Bank is still looking weak as long as 21500 is not

taken out and downside to 20675 is still a possibility if it trades below 21000’ the Nifty Bank beached the 21000 marks and saw lover levels as expected and has closed marginally in the green… technically looks like dips until 20675 is buyable and upside to 21800 is a possibility…


0 views0 comments