Sharing analysis of today's trading Session for NSE Nifty 50.
Today’s trading action can be seen in 3 parts, First Consolidation at higher Levels, then a steep fall and lastly some recovery. Today Nifty opened with a Gap-up of 50 points and traded in a narrow 50 points range of 11310 to 11360 till 12:25 PM. Nifty did not trade below its previous day close till 12:30 PM. The 50 stock Index made its intraday top of 11366 near 12:25 PM and then started falling one way along with DOW Futures. DOW Futures which was trading around 27975 at 12.25 PM nose-dived 300 points in next one hour. Nifty taking the lead of Dow Futures also nose-dived 250 points between 12:20 PM to 01:30 PM. The fall was somewhat triggered by unexpected slip in Chinese Retail Sales data for July 2020 and lower than expected Chinese Industrial Output growth for July 2020. Other global factors affecting markets were delay in U.S. Stimulus Package 2.0. Britain’s FTSE 100 & French CAC Index also fell more than 1.5% after announcement of New Quarantine Rules by Britain. Back home on Dalal Street, buzz of high valuations also dragged the Nifty lower along with global factors. In the third leg of today’s trading, market recovered slightly from its intraday lows and closed 122 points or 1.08% lower for the day.
Nifty is still trading above its bullish trend line. Today also it took support at this trend line. This trend line has been in effect since last 3 months. 11000 still hold highest OI in Put side on weekly and monthly contracts. 11100 to 11000 will act as a strong support for Nifty in coming trading sessions. Today's FII/DII data also doesn’t seem negative. In fact there was some buying by FII in Index Futures. As long as Nifty trades above the bullish trend line, Market view is bullish. 11100 to 11000 are Stop Losses range for long positions on positional basis. Monday market will be crucial and important. If Market closes and trades with strength above 11200 on Monday, we might see Nifty again retest its higher levels. Any weakness below 11100 will pull the market down. Right now, DOW Fut has recovered fully and trading around 27960. SGX Nifty is also trading around 11258. NOT BEARISH YET.
Today’s trading action can be seen in 3 parts, First Consolidation at higher Levels, then a steep fall and lastly some recovery. Today Nifty opened with a Gap-up of 50 points and traded in a narrow 50 points range of 11310 to 11360 till 12:25 PM. Nifty did not trade below its previous day close till 12:30 PM. The 50 stock Index made its intraday top of 11366 near 12:25 PM and then started falling one way along with DOW Futures. DOW Futures which was trading around 27975 at 12.25 PM nose-dived 300 points in next one hour. Nifty taking the lead of Dow Futures also nose-dived 250 points between 12:20 PM to 01:30 PM. The fall was somewhat triggered by unexpected slip in Chinese Retail Sales data for July 2020 and lower than expected Chinese Industrial Output growth for July 2020. Other global factors affecting markets were delay in U.S. Stimulus Package 2.0. Britain’s FTSE 100 & French CAC Index also fell more than 1.5% after announcement of New Quarantine Rules by Britain. Back home on Dalal Street, buzz of high valuations also dragged the Nifty lower along with global factors. In the third leg of today’s trading, market recovered slightly from its intraday lows and closed 122 points or 1.08% lower for the day.
Nifty is still trading above its bullish trend line. Today also it took support at this trend line. This trend line has been in effect since last 3 months. 11000 still hold highest OI in Put side on weekly and monthly contracts. 11100 to 11000 will act as a strong support for Nifty in coming trading sessions. Today's FII/DII data also doesn’t seem negative. In fact there was some buying by FII in Index Futures. As long as Nifty trades above the bullish trend line, Market view is bullish. 11100 to 11000 are Stop Losses range for long positions on positional basis. Monday market will be crucial and important. If Market closes and trades with strength above 11200 on Monday, we might see Nifty again retest its higher levels. Any weakness below 11100 will pull the market down. Right now, DOW Fut has recovered fully and trading around 27960. SGX Nifty is also trading around 11258. NOT BEARISH YET.
Trade active:
As mentioned in the Friday's post, market bounced back from the support trend line. Today's daily Nifty candle stick pattern is Dragonfly Doji. I am bullish on Nifty for now. Will buy for Nifty target of 11370 and above with SL of 11180
Trade closed: target reached:
Target Achieved. Nifty closed at new high after Mar 2020 fall. i feel Nifty can see resistance at 11433.