Bulls continue to rule the
street,market indices jumping aboard a China-driven rally in global shares,
with HDFC Bank Ltd gaining after it reported strong loan growth through the
first months of the COVID-19 crisis. Global stock markets rallied as investors
bet on a revival in Chinese activity to boost global growth, even as
coronavirus cases continued to surge. The Nifty ended 1.47% higher at 10763 and
the Sensex up 1.29% at 36487. Both settled at four-month peaks. India overtook
Russia with the world's third-highest number of novel coronavirus cases, at
nearly 7,00,000 as of Monday morning.
While the case numbers are a deterrent for markets, data including manufacturing activity and car sales released last week indicated that we are coming back to normalcy. India, the world's second-most populous country, is slowly limping out of months-long lockdowns triggered by the novel coronavirus. This was the fifth consecutive session when the index formed higher high and low, suggesting that supports have shifted higher. Nifty tested the 10,800 level and halted in the gap area between 10750 and 10,825, which was created during the March decline. The hourly momentum indicator has been pushed into the overbought zone and needs to cool off. Nifty can now enter a brief consolidation in the 10700-10800 range before stretching higher. For now, there are no apparent sell signals on the charts. The immediate hurdle for the index seems to be the 200-day simple moving average, whose value is placed around 10880. Any weakness may get confirmed on a close below 10695 level. In the last three sessions, Nifty showed a gap-up start for a second time. These gaps can be classified as continuation gaps, as they appear to be in the middle of the trend. Meanwhile, the direction indicator is showing accelerating momentum, as ADX has started to slope upward and is ruling above 25. It is indicating a possible continuation of the uptrend. We should be headed to 10850-10900 levels. The support for the Nifty is now upgraded to 10600.
While the case numbers are a deterrent for markets, data including manufacturing activity and car sales released last week indicated that we are coming back to normalcy. India, the world's second-most populous country, is slowly limping out of months-long lockdowns triggered by the novel coronavirus. This was the fifth consecutive session when the index formed higher high and low, suggesting that supports have shifted higher. Nifty tested the 10,800 level and halted in the gap area between 10750 and 10,825, which was created during the March decline. The hourly momentum indicator has been pushed into the overbought zone and needs to cool off. Nifty can now enter a brief consolidation in the 10700-10800 range before stretching higher. For now, there are no apparent sell signals on the charts. The immediate hurdle for the index seems to be the 200-day simple moving average, whose value is placed around 10880. Any weakness may get confirmed on a close below 10695 level. In the last three sessions, Nifty showed a gap-up start for a second time. These gaps can be classified as continuation gaps, as they appear to be in the middle of the trend. Meanwhile, the direction indicator is showing accelerating momentum, as ADX has started to slope upward and is ruling above 25. It is indicating a possible continuation of the uptrend. We should be headed to 10850-10900 levels. The support for the Nifty is now upgraded to 10600.
Resistance: 10850,
10950, 11050
Support: 10600,
10500, 10400
i want to join your service for stock option
ReplyDeletethank u sir . for more live calls contact on whatsapp 9039542248
DeleteI personally want to thank you for opening up your ideas to masses. I have benefited a lot from your writing and it really made me question things/ideas on how to go about this business. The clarity in your piece is spot on.
ReplyDeletethank u sir . for more live calls contact on whatsapp 9039542248
Delete