NIFTY (30/03/2020)

Hello Everyone,

This is what I have plotted on Friday, 28/03/20 on NIFTY 30-Min Chart. One thing I have observed is that after scaling a high of 9038, NIFTY failed to reach that high again and started moving downwards from 8840, indicating that this is the resistance level for NIFTY.

The following chart will give everyone a better idea of what I'm talking about,

Looking at the last 4 candles, you will notice two big red and green candles peaking at the same time, which is enough for me to stick my neck out and say that NIFTY may have topped out.

NIFTY LEVELS:

On the upside,

NIFTY will move up only if it is able to breach 8840, 8918 and 9021.

These are the resistance levels which NIFTY needs to breach convincingly to maintain its upward movement.

On the downside,

NIFTY has support at 8500 levels, below that we expect it to touch 8300 and ultimately 8000.

My personal view is to trade in Puts as I do not see NIFTY moving up now.

Reasons for maintaining this view:

●     SGX NIFTY (FUT) closed at 8470

●     DOW has already given a V-Shaped rally and we expect profit booking there as well

●     COVID-19 cases are on the rise in India

●     European Markets closed in red on Friday, 28/03/20

●     INDIA VIX is above 70 (which is a sign of worry)

●     DOW Futures closed almost 5% down, which was around 900 points

●     USA VIX is also on the rise (7.5%)

●     Low Rollover in April series

Overall, all global factors considered along with NIFTY’s movement is not giving me the confidence for any rally. So kindly maintain a sell view on index for now.

So, I would say that the bears have taken control of the market again. Hopefully the bulls will be back soon but for now let the bears rule.

Disclaimer: The above recommendation is only for educational purposes. Do not consider it as a buy or sell call. 

Disclaimer: The above recommendation is only for educational purposes. Do not consider it as a buy or sell call.