On last Friday, the Indian stock market has
made a historical record. In the past, many time market has opened gap up on
big events and increased by 100-200 points in a day. However, on 20th
September 2019, our finance minister Nirmala Sitharaman announced three big
rate cuts and this thing has given relief to domestic as well as foreign
investors. Our market took it positively and closed at day high.
Technical
Overview of Nifty: In our last article we have seen Nifty was trading in a range and was
making different chart patterns near support and resistance. On last weekly
expiry day i.e. 19th September 2019, Nifty has given break down to the
range and closed below support. As per chart study, we were bearish and was looking
for targets of 10600-10300. Next day Nifty opened at 10746.80 and closed at
11603.40, it is a big gain of 856 points in a day. And this one day gain means to
break out to Triple Top and sell call became buy call. On 23rd
September, Nifty has closed near next resistance and made the spinning top on the
daily chart. Now we are expecting small correction till 11400-11300 as per
chart and sentimental studies. For next rally, Nifty should be close above
11700-11750. Also Nifty and many large-cap stocks has closed above 200 DMA.
Riskers can sell Nifty at CMP with the small
stop-loss of 11700 or wait for a dip for buying.
Technical
Overview of NiftyBank: NiftyBank has
given bounce from support and given back to back breakout on the daily chart. If
we compare the chart of both index then we can easily understand that NiftyBank
has closed above its previous resistance and now resistance became support. NiftyBank
looking stronger than Nifty.
Disclaimer:
The contents produced here are purely for educational purpose. They
should not be construed as buy/sell recommendations. I am not a SEBI
registered Analyst or Investment Advisor. Readers are advised to consult
their Investment advisor before taking any decisions based on the above
write-up.
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