Trade Plan- Last week’s bounce likely to prove, Deceptive!

With a gap-down opening imminent, any pullback will see the 9,600 and 9,665 levels act as stiff resistance points for Nifty. On the lower side, supports are expected to come in at 9,550 and 9,405 levels

The Relative Strength Index (RSI) on the daily chart stood at 57.28; it has marked a fresh 14-period high, which is a bullish signal.

However, it is unlikely to result in any continuation of the uptrend as Monday’s session is likely to see a gap-down start. The index has halted at the 50-DMA, which currently stands at 9,867.

We strongly recommend not to follow down moves to make fresh purchases aggressively. It would be prudent to wait for a directional bias to get established following Monday’s trade before taking any major exposure. A highly cautious view is advised for the day.

Nifty Bank unfolded strongly as expected and ahs closed in the green…technically now 22418 is possible as long as 21350 holds…

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