What has happened yesterday? Nifty Index as expected opened on a positive note with gap up beyond our resistance zone i.e.9440-9535, made a day high at 9584.50 thereafter, the Index witnessed a sell-off till 9360 levels, most of the session the Index tried to sustain above 9390 but unable to do so, the late hour sell-off dragged again till 9351.15 and closed the day at 9383.55 with positive note.
What will happen today? Nifty Index may open on a negative bias with a gap down by tracking the global indices to test 9315-9240, if trade and sustain below 9240 then, it may re-test 9210-9175-9140-9100-9040-8970. Likewise, the immediate resistance seen at 9350-9390, if trade and sustain above 9390 then, it may re-test 9425-9465-9520-9585-9640.
Special Mention: Yesterday, the Nifty Index though it made huge gap up but unable to surpass 9600 levels, it seems the PM's announcement on the economic and social revival package of Rs.20 lakh crores, not enthused the stock market, it shown a thumps down inspite of the annoucement about the FM press conference by 4 pm, the Index not inclined to move up and closed well below our threshold levels i.e. 9390, the FM's first level revival package is more of MSME related one and it may not boost the doemstic demand and we must wait till this week-end for further revival packages, based on that the stock market may take further direction. As of now the range can expect 9000-9600 levels in the near term, further direction only breaching either below/above the said ranges, may pave the way for further levels.
Trading Strategy: The Investor/trader may invest once again at 9000-8800 levels, when the Nifty Index trading these ranges in Nifty50 stocks for short term perspective for 10-15% return, it is a traders market, to trade for short term gains, rather to wait for long term basis. The covid19 impact is difficult to measure on the economy in this juncture, must wait for another 2-3 months till then we must wait and watch the further developments. In Nifty Futures may buy on dips till 9000 levels if any one wants.
For time being, the Index bottemed out at 7500 levels unless, any unexpected worse thing happens in the near term, till then this level may act as a strong support. Please refer our earlier Nifty Special Bulletin dated: 28th Feb'20, 16th Mar'20 and 29th March'20, to read our special bulletin please click this link: https://www.niftytech.in/marketupdate/54
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