07.07.2020 Tuesday, 8.40 am 

Hi Readers

What has happened on yesterday? Nifty Index as expected and written opened on a positive note with gap up at 10723.85, which was beyond our resistance band i.e.,10660-17015, made a day low at 10695.10 thereafter, the Index moved up near our further resistance level i.e., 10825, and made a day high at 10811.40, the mild Intra sell-off dragged down till 10750 and closed at 10763.65 on a positive note. 

What will happen today? Nifty Index may open on a flat to positive note to test 10770-10811 if open, trade and sustain above 10811 then, it may test 10845-10880-10990-11035. Likewise, the immediate support lies at 10740-10695, if trade and sustain below 10695 then, it may re-test  10660-10620-10590-10560-10510-10430.

Special Mention: Yesterday, the Nifty Index continued its upward journey beyond our threshold level i.e., 10770, it tested 10811.40 and unable to close above 10770, watch today if, the Index must trade and sustain above 10770 and should break 10811, if these things happens then, next hurdle lies at 10890-10990, the long term simple Daily Moving Average i.e,200 DMA lies at 10890, it is not so easy to trade, sustain and closes above 10890. The Nifty Index may try to test 10890-10990 levels either today or tomorrow then, the consolidation is a must between 10550-10990. At the same time further weakness is possible only, when the Index closes below 10550 for three consecutive trading sessions then, it may re-test 10330-10200 levels in the near term, let see how it trades and closes today. 

Trading Strategy: The Investor/trader may exercise due caution at the higher levels i.e 10770-10890-10990, the profit booking area lies at these levels if, unable to cross and closes above these levels then, book profit in the equity segment and invest in the Nifty 50 stocks, when the Nifty Index trades near 10200-10000 levels, for a short term gain around 10-15%. This is a traders market, to trade for short term gains, rather to wait for long term basis.

The Nifty index current Price Earnings-PE is trading above 28 times, technically it is a highly over bought zone while, the Q4(Mar'20) earnings declined over 50% when compared to Q3 (Dec'19) but, the Index sidelined the fundamentals and moving northwards everyday with the help of few top weighted stocks, shows it is not aligning with the reality also, it infers to exercise due caution at the higher levels. 

Further details please do call us on 98410 48022 or contact thro' whatsapp: 99624 70636. Please read carefully, the Disclaimer published on the Disclaimer page. Wishing you for a safe and secured trading.