Mentorship InstaView 30 June’21: Banks & Financial Disappoint


Nifty View: What could have been a firm positive close above 15,850 for the benchmark Nifty turned around as we noticed sharp selling within the banking and financial stocks that weighed the index down 129 points from intraday highs to close near 15,750. On daily charts, we have an “Outside Bar” with the short term trend on the verge of a reversal. Yes, short term charts are oversold, which can lead to a bounce back, but from here on today’s high of 15,875 will act as important resistance. Price weakness is likely to persist if this level is not taken out on the upside. On the downside, we have few levels to watch for of which the first one is at the previous swing low of (15,650-15,700). Strategically, we should not change our bullish bias, but keeping in mind the nature of the reversal which we observed today, it’s better to be a little cautious and be choosy in terms of picking our long trades.

Thank you for following my work and please feel free to share your thoughts and suggestions.      
 
Trade Well. Trade Wise.