10.07.2020 Friday, 8.42 am 

Hi Readers

What has happened on yesterday? Nifty Index contrary to our expectation opened on a positive note with gap up near our resistance zone i.e.,10745-10790, made a low 10733 thereafter, the Index rallied and tested 10800, the volatility dragged the Index till 10755, further the late hour up move lifted the Index till 10836.85 and closed at 10813.45 on a positive note. 

What will happen today? Nifty Index may open on a flat to negative note by tracking global indices to test 10790-10745 if open, trade and sustain below 10745 then, it may test 10715-10690-10675-10630-10590-10555. On the other hand, the immediate resistance seen at 10810-10847, if trade and sustain above 10847 then, it may re-test 10890-10935-10990-11035-11085.

Special Mention: Yesterday, the Nifty Index made an Inside day formation, not broken the high and low of 08th July'20, which infers the indecisiveness, that means not taking any direction, today carefully watch the 08th July's day high 10847.85 and the low 10676.55, the index may take further direction by violating these levels either side, though the Index closed above 10770 for three consecutive trading sessions, it fails to test 10890-10990 levels, it is trying since Monday, the lack of confidence at the levels, the sell-off dragging till 10700-10675. As stated earlier, today we must watch 10660-10630, any weakenss below then the Index may test 10550, further any close below 10770 for three consecutive trading sessions then, the Index may re-test 10330-10200 levels very soon. At the same time, the Index must break 10845 then, the Index may test the long term simple Daily Moving Average i.e,200 DMA lies at 10886, then to 10990 levels. But 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, it looks the Index may consolidate between 10990-10550 before taking any fresh move beyond 11k, let see how it trades and closes today. 

Trading Strategy: The Investor/trader may exercise due caution at the higher levels i.e 10845-10890-10990, 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.