On 3rd October 2019 Nifty opened 11,322, made a high of 11,370 low of 11,257 and finally closed at 11,314. Nifty didn’t break yesterday’s low of 11247 and closed above 11,300.
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 if Nifty goes below 11,280 then we can expect fresh selling. Else market can consolidate and move to 11400
Stocks analysis for the Day
- Tata Chem: Sell at CMP with a stop loss of 590 and target of 576
- 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 SRF, a Daily chart. It has broken down the support line. Look to sell it.
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