Bulls are on back foot, Bears continued
to rule on dalal street … Nifty has started the week on negative note as uncertainty over global
trade negotiation and US FED policy later this week added volatility. The Nifty extended downtrend on first
day of the expiry week and closed below psychological 10700 levels as investors
may be cautious ahead of Interim Budget to be announced on February 1 and
expiry of January F&O contracts on January 31. Index has opened on
bearish note and gradually declined as the session progressed & finally
closed at 10661 down by 119 points. Nifty has started from 10792 made a high of
10804 and low of 10630.
Some more choppiness could be witnessed in the upcoming session. The recent swing low of 10630 levels could help bears to rule. Now 10600 levels has become an impotent support level for nifty. Only above 10800 levels could help bulls to comeback in the ground. Traders should trade with proper strategy in such scenario. It looks prudent for traders to avoid short-term bets and focus on any breach of larger trend, which may chalk out the future course of action for the indices. The 10550 level still looks like a sacrosanct support, a breach of which shall take the Nifty future below the 10500 level. A decisive close above the 10800 level should usher in a sustainable uptrend.
Some more choppiness could be witnessed in the upcoming session. The recent swing low of 10630 levels could help bears to rule. Now 10600 levels has become an impotent support level for nifty. Only above 10800 levels could help bulls to comeback in the ground. Traders should trade with proper strategy in such scenario. It looks prudent for traders to avoid short-term bets and focus on any breach of larger trend, which may chalk out the future course of action for the indices. The 10550 level still looks like a sacrosanct support, a breach of which shall take the Nifty future below the 10500 level. A decisive close above the 10800 level should usher in a sustainable uptrend.
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Resistance: 10800, 10850, 10900
Support: 10630, 10575, 10535
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