Tuesday, July 7, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 8 JULY 2020

Bulls win the street to the fifth day in a row. Nifty hit 10800 mark & close the day at 10799. Including today's close, the indexes have gained around 5% over the last five sessions, and more than 40% from four-year lows hit in March when virus fears had pummeled markets. Markets were mostly lower in Asia on Tuesday as expanding coronavirus outbreaks dimmed hopes for a global recovery. Government stimulus and hopes for an economic turnaround have so far kept investor sentiment upbeat.
The Nifty is moving up further, the index could rise towards 10887, which corresponds to the 200-day SMA. Weakness could emerge if the support of 10690 is broken. The Nifty traded in a range today with an upward bias. We went closer to the support level of 10650 by touching an intraday low of 10690 and sprung back to cross 10800. For the upside momentum to continue we would need to go past 10855 which should take us to 11000. If we are unable to cross 10855, we might witness a range bound movement between 10650 and 10875.
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Resistance: 10875, 10950, 11000
Support: 10650, 10600, 10550

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