Tuesday, September 24, 2019

EXPIRY AHEAD; NFITY OUTLOOK FOR 25 SEP 2019

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Tuesday bulls were in relaxing mood. After 2 days record breaking runs bulls were taking breathe. Nifty & sensex ended a little changed on a volatile day. . After two days of stellar rally following the government's decision to cut corporate taxes, domestic stock markets witnessed profit booking on Tuesday amid choppy trade as Asian peers ticked up on renewed hopes about US-China trade talks.  The Sensex rose as much as 216 points to 39306 in early trade, and declined 393 points from that level to hit 38913 on the downside at the day's weakest mark. The Nifty benchmark moved in a range of 116 points, between 11655 and 11539 at the day's highest and lowest levels respectively.
Apart from what has already been announced, the market is now gauging what will be announced next. There is lingering optimism that Friday's announcement could be followed up with something else too, which is why there is some volatility. Expiry is ahead on 26 sep 2019. A reasonable long candle was formed today with minor upper and lower shadow with sharp opening upside gap. This pattern indicates a sharp upside momentum prevailing in the market. Though, Nifty placed at the hurdle of previous lower top at 11700 of July 17, still there is no indication of any reversal pattern in the Nifty at the highs. The short term trend of Nifty is sharply positive; having moved up sharply in the last couple of sessions, there is a possibility of consolidation/minor downward correction at the highs before showing further upside. The near term upside levels to be watched will be 11700 while support will be 11500.
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Resistance: 11700, 11750
Support: 11550, 11500

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