Wednesday, July 10, 2019

Nifty Analysis, Outlook and Trend for 11th Jul 2019

Medium Term Trend:   Down (Up above 12103)

Weakness Continues: Nifty opened flat and tried to cross 11600 levels but met with a strong resistance and pushed back to 11500 levels. It made a low of around 11480 and closed at 11499. Down 60 points.

11600 was the previous support and today same acted as a resistance. We had mentioned yesterday that 11610-11640 is the key level to watch for short term and markets must trade over it in case it wants to resume the uptrend. We had also mentioning that 11500-525 is another key level below which markets can slip to 11400 levels. well today market failed to cross 11600 and have closed below 11525 levels. If Nifty sustains below this level for some more time then it can further fall to 11400 ( and even lower levels around 11350).

For now Nifty seems under pressure and it seems market is not liking the additional tax imposed on FPI and same is keeping the selling pressure on for now. Having said this, the markets always move where they want to move and such news/event driven move never last long.

PCR is trading below 1 and it is the first time in last few months that PCR has fallen below 1 suggesting that selling pressure is likely to continue for now.

So nothing much to add today, most of the things remains same as yesterday and now that we have made one closing below 11525 levels. Needs to see if the market sustains below this level and if that happens then the chances are that lower levels around 11400-350 can be tested pretty soon.

Happy Trading!

No comments:

Post a Comment