14.07.2020 Tuesday, 8.36 am 

Hi Readers

What has happened on yesterday? Nifty Index, as written and expected opened on a positive note at our resistance band i.e.,10820-10847, thereafter it tested our threshold level i.e,10890, made a day high at 10894.05, further the sell-off dragged the Index throughout the day till our support i.e, 10760, made a day low 10756.05 and closed at 10802.70 on a positive note. 

What will happen today? Nifty Index may open on a negative note with a gap down by tracking the global indices to test 10770-10715 if open, trade and sustain below 10715 then, it may re-test 10690-10675-10650-10630-10605-10555-10505 levels. On the other hand, the immediate resistance seen at 10820-10845, if trade and sustain above 10845 then, it may test 10894-10935-10990-11035-11090 levels.

Special Mention: Nifty Index, yesterday finally tested our major threshold cum resistance level i.e., 10890, as written earlier, the sell-off cum profit booking dragged till 10756, today also the weakness may drag the Index till 10715-10675, let see how it trades these levels, any further sell-off beyond 10675 and close below this level then, the Index may re-test 10555-10330-10195 in the near term. At the same time if, the index take the support 10675 and moves above 10770 and closes above 10770 then, it may re-test once again 10850-10895 levels. As stated last week the Index may take fresh directional upmove till 11375-11615, if it closes above 10890 for three consecutive trading sessions, also remember as stated last week the long term simple Daily Moving Average i.e., 200 DMA lies at 10885, this level is not so easy to surpass, sustain and closes above 10890, if to do so then, the upper side targets mentioned earlier are possible. 

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.