In the last one month, Nifty & BankNifty has broken all supports back to back. Everyone was scared to enter into the market, in last week market has made the bottom and given small bounce. On last Friday both indexes have closed near resistance and the first trading day of this week was again red. We are also confused about what is going on red-green-red-green, also this week have only 3 trading days. Let's see technical analysis below.
Technical Overview of Nifty: In last week Nifty has made bottom around 10780 and given some relief to traders & investors. On 6th August 2019 Nifty was closed in green and has made Bullish Engulfing on daily chart and chart pattern worked well. On last Friday index has created Spinning Top near resistance i.e. 11100 and has reacted the same as expected. If we see the daily chart then the last closing was neutral and the chart pattern is Bullish Harami. However, global clues are negative again. For the fresh rally, the index should be closed above 11150-11200 and 200 DMA as well.
As per my view, Nifty looking buy on gap down for short period with keeping stop loss below 10780 on closing basis.
Technical Overview of Bank Nifty: We are seeing the same technical analysis in Bank Nifty also. Here the plus point is many financial stocks has given good green closing on last trading day. However, there are chances to open gap down. Advice is same here buy on gap down with stop loss of 27400 on closing basis. For the fresh rally, the index should be closed above 28600 and 200 DMA.
Global sentiments are strongly negative i.e. American market fallen drastically, Dollar hitting a day high, and crude oil is also in green.
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