₹20 TRILLION STIMULUS FAILED TO BRING SMILE ON INVESTORS FACE

Cheers for bears !!! Bear stranglehold became stronger as government's ₹20 trillion economic stimulus package failed to cheer the street. Market changed drastically in the starting of the new week. Sensex crashed 1000 points & nifty also came near 8800 mark. While Sensex dropped 1068 points, to 30028, Nifty dropped 313 points to 8823.

The Nifty closed the day below 8850 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-week downtrend, then corrective swing would get extended into the 8700–8500 zone. For the time being, strength in the index shall not be expected unless it closes above 9000 levels. Traders should avoid long positions and look for some signs of stability around 9200 whereas existing shorts should be squared off if the Nifty fails to close below 8800 in the next trading session.

Resistance: 9000, 9500

Support: 8700, 8200