On 1st October 2019 Nifty opened 11,515, made a high of 11,554 low of 11,247 and finally closed at 11,359. If you have seen yesterday’s article on market outlook, you would have made good profits. As it was bluntly written that market to fall further and also SBI was given as a stock of the day.
Nifty manages to close above 200 DMA, which is considered to be a long term trend decider by many analysts, also nifty is respecting the GAP it has created on 20th September. So we can expect slight consolidation here at these levels.
But still, many indices have given fresh breakdown and have already filled the GAP created. that’s why it’s better to avoid positional longs. You can create longs for intraday or short term if risk-reward is favorable.
Nifty short term support stands at 11,300. On the higher side, 11,500 is a resistance.
As we can see from the daily chart of Nifty manages to close above 200 days moving average and the trend on daily is negative to sideways. Nifty is near to GAP support and 200 DMA support.
In the hourly chart also, Nifty has respected the GAP and formed a hammer pattern. This level can be very crucial for the market and Nifty may attempt to break the trendline again it this level holds
Stocks analysis for the Day
- Most of the banking stocks are still in sell mode. but as volatility is very high its better to sell when good risk-reward comes.
- Sell BOI at 62 with a stop loss of 64 and a target of 58 and lower.
Chart of the Day
The above chart is of Grasim, 60 mins chart. It has broken down the support line. its good to sell this.
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