Continuing downward
trend, the market settled with over 2 % loss on Friday as coronavirus (Covid-19) cases showed no signs of abating. Global confirmed
cases surpassed 1 million on Thursday with more than 52000 deaths. Back home,
an ongoing 21- day lockdown has already brought the economy to a standstill.
The Sensex ended at 27591, down 674 points, while the Nifty index ended at 8084,
down 170 points.
The Nifty closed the day below 8100 and formed a bearish candle on daily chart, as the closing was lower than the opening value. Considering the consistent weakness after the recent rally, we advise you to avoid long positions. The Nifty was decisively trading below its 50-day moving average and if it slips into some sort of multi-days downtrend, then corrective swing would get extended into the 8000–7800 zone. For the time being, strength in the index shall not be expected unless it closes above 8500 levels. Traders should avoid long positions and look for some signs of stability around 8700 whereas existing shorts should be squared off if the Nifty fails to close below 8100 in the next trading session.
The Nifty closed the day below 8100 and formed a bearish candle on daily chart, as the closing was lower than the opening value. Considering the consistent weakness after the recent rally, we advise you to avoid long positions. The Nifty was decisively trading below its 50-day moving average and if it slips into some sort of multi-days downtrend, then corrective swing would get extended into the 8000–7800 zone. For the time being, strength in the index shall not be expected unless it closes above 8500 levels. Traders should avoid long positions and look for some signs of stability around 8700 whereas existing shorts should be squared off if the Nifty fails to close below 8100 in the next trading session.
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Resistance: 8300, 8500
Support: 8300, 7800
Will nifty take lower circuit again ?
ReplyDeleteas the other asian markets showing some recovery we are not expecting any lower circuit as of now, but if Covid -19 cases will rise more in future more downfall may come in nifty. for live market trading tips whatsapp on 9039542248
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