On 28th Feb 2020 Nifty opened gap down at 11,382, made a high of 11,384 low of 11,175 and finally closed at 11,201. Nifty opened a huge gap down and that bearishness continued till the end. We were on the short side for last few weeks and have gained well in this downfall. You might call it as Coronavirus effect, but technically Nifty had given sell signal well before these sell-off days come.
Same is the case with bank nifty. in fact, bank nifty has given a fresh breakdown on daily charts. Any rally should be used to sell it. Bank nifty should underperform nifty in the near future.
Now the big question is where Nifty is headed now? If you see Nifty weekly chart then we have good support at 11000-11050 levels ( in fact this chart of Nifty helped us to short nifty at 12200 and cover it at 11700, a whopping 500 points). The daily chart of Nifty also shows support at 11100- 11050 levels. So Nifty can take a bounce from this level. Any good confirmation is a buy for a very short duration, as we expect Nifty eventually will break down this support also. Any longs should be hedged.
Stocks analysis for the Week
There are plenty of stocks which have given fresh breakdown. Enter when you are getting a good risk-reward. As the market got oversold, sell only when a favorable position comes, as this market can become more volatile in the coming days. If you wait for your price to come and put a strict stop loss you can earn very good money in this type of market.
- ZEEL: Breakdown on the daily chart. Sell ZEEL future on any rally keeping 254 as stop loss.
- JSW Steel: Breakdown on daily chart. Sell on rally keeping 241 as stoploss.
- Cummins Ind: Breakdown on daily chart. Sell on rally keeping 540 as stoploss.
Chart of the Week
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