For the weekend 31st July'20-Friday... Updated on 26.07.20, Sunday : 9.10 am

Last week, the Nifty Index as expected and wriiten opened with a positive note at 10999.45, thereafter it moved till 11238.10 on Tuesday, then the sell-off dragged the Index and made a weekly low at 11056.55, took strong support at 11056.25 and moved up once again and made a weekly high at 11239.80, ended the week at 11194.15 with a weekly gain by 292.35 points i.e.,2.68%. 

Nifty index may open on Monday i.e., 27th July'20, with flat to positive note to test 11200-11240, if able to open, surpass and sustain above 11240 then, the immediate resistance seen at 11285-11375-11430, further upmove above 11430 then, the Index may test 11535-11620-11750 levels. On the other hand, the immediate support lies at 11125-11090, any sell-off below this band, the Index may re-test 11045-10990 levels, further weakness below 10990 then, the Index may test 10895-10845-10675-10560 and watch 10560, which will act as a strong support to hold the Index.

Special Mention: With a last week close, the Index able to trade and close with positive bias by straight six consecutive weeks  and breaking every week's high and peaked till 11239.80. also, it moved and closed above the threshold level i.e., 10990 last week, further close above this level for an another two weeks, may take the Index till 11620-11750-11870 levels. Likewise the important support lies at 10990-10890, as long as the Index sustain and closes above 10990-10860, then no worry to the Nifty Index, it looks, the Index may peak this week too, till 11280-11370-11430, any weakness at these levels then, the Index may witness a profit booking to test once again 11055-10990-10860 levels, further weakness cum sell-off beyond 10860 then, the Index may re-test 10770-10555 in the near term, let see on Monday how it opens, trades and for the whole week since, the F&O expiry and month end falls this week, we can expect more volatile move ahead this week, please be cautious at the higher levels.

Last week, mostly Banking, IT, Auto stocks and Reliance Industries, helped the Nifty Index to peak to the high level and able to take strong support, as written and expected last week, the Banking stocks out performed and closed with a positive note, but the Nifty Bank is not trading in a bullish tone, whenever the up move seen in the Nifty Bank stocks, it is witnessing a sell-off, let see how it perform this week.  

The Institutional Investors trading data shows and infers that, the Foreign Institutional Investors-FII's last week bought every trading sessions and they bought in total, last week to the tune of Rs.7791.90 crores on the net basis whereas, the Domestic Institutional Investors-DII's, sold every day and they sold in total last week, to the tune of Rs. 5323.10 crores on the net basis in the equity segment, this being a major reason, coupled with more market participation among the retailers segment also helped the Nifty Index test high levels and close with positive note. 

Tading Strategy: The Investor/trader may exercise due caution, especially this week at the higher levels i.e 11250-11375-11440, the profit booking area lies at these levels if, the Index unable to cross and closes above 11375 levels this week then, book profit in the equity segment and invest again in the Nifty 50 stocks, when the Nifty Index trades near 10770-10560 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.

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