08.07.2020 Wednesday, 8.36 am 

Hi Readers

What has happened on yesterday? Nifty Index as expected and written opened on a flat to positive note at 10802,, which was our resistance band i.e.,10770-10811, made a high at 10802.85 thereafter, the Index witnessed a sell-off and moved down till our support level i.e., 10695, made day low at 10689.70 further the volatile move took the Index till 10813.80 and closed at 10799.65 on a positive note. 

What will happen today? Nifty Index may open on a positive note to test 10811-10845 if open, trade and sustain above 10845 then, it may test 10880-10990-11035-11085. On the other hand, the immediate support lies at 10770-10740, if trade and sustain below 10740 then, it may re-test 10690-10655-10620-10590-10560-10520-10440.

Special Mention: Yesterday, the Nifty Index continued its upward journey beyond our threshold level i.e., 10770, it tested 10813.80, though the mild sell-off dragged till 10690, it moved up again and closed well above 10770, watch today if, the Index must trade and sustain above 10770 and should break 10813-10845, if these things happens then, next hurdle lies at 10885-10990, the long term simple Daily Moving Average i.e,200 DMA lies at 10888, it is not so easy to trade, sustain and closes above 10890-10990, if the Nifty Index moves above 10890 and closes above three consecutive trading sessions, then the new directional up move may take the Index till 11375-11615 levels before July'20. At the same time, the Index may consolidate between 10990-10550 before taking any fresh move beyond 11k. Further the 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. The weekly option expiry falls tomorrow, the Index may witness volatile move today and tomorrow.

Trading Strategy: The Investor/trader may exercise due caution at the higher levels i.e 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.