For the weekend 24th July'20-Friday... Updated on 19.07.20, Sunday : 7.40 am

Last week, the Nifty Index as expected and wriiten opened with a positive note at 10851.85, thereafter it made a high on Monday at 10894.05, the sell-off dragged the Index near our threshold support level i.e, 10555, made a weekly low at 10562.90 on Tuesday, took strong support at 10562.90 and moved till our resistance level i.,e 10935, made a weekly high at 10933.45 on Friday and ended the week at 10901.70 with a weekly gain by 133.65 points i.e.,1.24%. 

Nifty index may open on Monday i.e., 20th July'20, with a positive note to test 10933, if able to open and surpass 10933 then, it may test the immediate resistance 10990-11035, further upmove above 11035 then, the Index may test 11080-11135-11183-11230-11280-11370 levels. On the other hand, the immediate support lies at 10825-10770, any sell-off below this band, the Index may re-test 10700-10675-10630-10560 levels watch 10560, which will act as a strong support to hold the Index, the sell-off beyond 10560-10550 then, further support for the coming week lies at 10330-10195 levels.

Special Mention: With a last week close, the Index able to trade and close five consecutive weeks with positive bias and breaking every week's high and peaked till 10933. Also, it moved and closed above the long term moving average level i.e., 200 DMA, 10874 levels, as long as the Index sustain and closes above 10894-10875 levels then no worry to the Index and it may test 10990-11183-11280-11370 levels this week. It looks, the Index may peak this week at 11035-11280-11370, any weakness at these levels, the Index may witness a profit booking to test once again 10770-10675-10560 levels and may close with a negative note this week, let see on Monday how it opens and trade further the whole week since, this week is a crucial one to close on a positive note, else the Index may consoldiate with downward bias.

Last week, mostly Nifty IT Stocks (Nifty IT index gained by 8.07%) and Reliance Industries, helped the Nifty Index to peak to the high level and able to take strong support and Banking stocks not participated, moreover the Nifty Bank Index closed with a negative note (Nifty Bank Index lost by 1.93%), though it closed with a negative bias,  I expect this week, the Banking stocks may trade with positive bias to lift the Nifty Index to the further higher levels.

Trading Strategy: The Investor/trader may exercise due caution, especially this week at the higher levels i.e 10990-11035-11200, the profit booking area lies at these levels if, the Index unable to cross and closes above 10990 levels this week then, book profit in the equity segment and invest again in the Nifty 50 stocks, when the Nifty Index trades near 10550-10200 levels, for a short term gain around 10-15%. This is a traders market, to trade for short term gains, rather to wait for long term basis.

Further details please do call us on 98410 48022 or contact thro' whatsapp: 99624 70636. Please read carefully, the Disclaimer published on the Disclaimer page. Wishing you for a safe and secured trading.