VasuSinghal23

NIFTY consolidated again. Bears are still on the driver's seat

NSE:NIFTY   Nifty 50 Index
We are witnessing a significant correction in the market today. After a significant downfall in yesterday's market since early June, the market finally corrected itself yesterday. However, in today's market nifty has again climbed above the level of 10700. But still it looks like the bulls are having a kind of advantage in the market because the market is kind of elevated when compared to the economic conditions due to the city lockdown happening in the country. We can expect the market to be in consolidated as nifty dipped strongly after touching the 200-DMA of 10900.

The market can look up to liquidity at regular intervals therefore a PE of 10600 can be an ideal pick for F&O traders. The traders can hedge their positions with pharmaceuticals stocks like Dr . Reddys Lab. Also, FMCG stocks are lined up for their quarterly results in the upcoming week and we can expect some bounce back.

TECHNICAL ASPECT

Nifty is currently consolidated between the strong support level of 10500 and the 200-DMA of 10900. If these levels are broken which can expect the index to make significant moves in the market. However, looking at the current scenario of citywide lockdown which includes major commerce trading cities like Delhi, Mumbai, and Bangalore the market can face a certain pullback again. If nifty manages to close above the psychological mark of 10800 which can expect the comeback of bulls from there.

The stoch-RSI is showing downtrending nature which can provide some advantage to the bears. The price candles are representing the scenario of consolidation.

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