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Nifty 50 Intraday Trade Setup for 26th may 2020

NSE:NIFTY   Nifty 50 Index
Good Morning sir's,

Hope this long weekend went good for you. Last we had seen negative sentiment in the market because of RBI governor announcement . Today is the first trading session for this week and main question is does the negative sentiment will be continue or we can see a short covering in today Trading session. Let's the key factor for today Trading session at first.

Key factor
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1-SGX is trading on 9152. which is 70 points above then previous closing. We are going to see a 45-60 Point gap up opening .
2- Dow looks strong, Trading on 24824 which is 230 point up from previous closing.
3-Most bank and financial stocks may also extend their losses of the previous session after the Reserve Bank of India (RBI) announced the extension of loan moratorium by three months.RBI’s decision to extend the moratorium till August 31 could turn out to be a major negative for the non-banking financial companies (NBFCs), Emkay Global said in a note.
4-Stocks in Europe and Asia gained as investors weighed more signs of economies reopening around the world against the rise in US-China tensions
5- Foreign investors have infused over Rs 9,000 crore into the Indian equity markets in May so far amid attractive valuations of stocks and a mega block deal involving HUL. The inflow comes following a net withdrawal of Rs 6,883 crore in April and Rs 61,973 crore in March on fears of a corona virus induced global recession.
6-he Govt extended the validity of various motor vehicle-related documents till July 31. No additional/late fee will be charged for delays in the validation of documents pending from February.
7-The extension of moratorium by three months beyond May is likely to expose lenders to the risk of some borrowers having the capability to pay skipping repayments, fear bankers.
8-Insurance co's are bracing for large claims on account of Amphan, the cyclone which ravaged West Bengal and Orissa last week. Most of the claims are expected from property, motor and crop insurance sectors.
9-Value erosion in PSUs can limit Govt's disinvestment target. The fall in stock prices has eroded significant value in some of the largest PSUs, which will limit receipts for the Govt .
10-*Current Affairs*: India witnessed the biggest spike with 6,767 positive coronavirus cases and 147 deaths reported in the last 24 hours, taking the total number of Covid-19 cases to 131,920
11-The Tirumala Tirupati Devasthanam Board has decided to sell 50 immovable properties in Andhra Pradesh and Tamil Nadu, worth Rs 23.92 crore through a public auction.
12- Crude is still strong and showing strength in upside.

Technical View
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As per my analysis we are going to see a short covering in today trading session but don't think that trend is going to change . Market is still in Negative sentiment so be careful in buy side and trade with less exposure.

Resistance : Nifty Intraday resistance is on 9,170 which is taken by a trend line and key resistance is still on 9,900
Support : Nifty Intraday support is 8,960 which is Friday trading session low. Key support is on 7540

Trade Setup
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Long : Long Position in Intraday can build if Index break 9,170 and sustain above on it.
Short : Short position can build if Index trade lower then 8,960.

Disclaimer: I am not a SEBI Registered Research Analyst and all the information provided here is for educational purposes Views are shared based on market research and study and personal in nature. Others can take the different view and opinions.

Good Luck and Happy Trading
Virendra Pandey

Comments

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