Monday, September 23, 2019

Nifty / BankNifty Coming Days View


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.

As per our view, positional traders can long NiftyBank from current prices i.e. 30566 for targets of 30800-31100-31500. Keep stop-loss of 30150 on closing basis.






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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