Thursday, August 29, 2019

Nifty Analysis, Outlook and Trend for 30th Aug 2019

Medium Term Trend:  Down (Changes to Up above 11220)

Weak Expiry: Nifty opened down today below 11K levels and made a low of 10920 levels. It made an attempt to cross 11K levels however couldn't sustain it and once again dropped to 10950 and closed almost 100 points down.
 
Nifty was pretty volatile today ( which is expected on a expiry day). yesterday we had mentioned that if 10980 is breached then will have to analyse it further, however looking at the way market moved today ( and the fact that it was an expiry day) , the breach of 10980 is not looking threatening as of now. The way market traded today shows that band of 10900-940 is likely to offer good support and further weakness is likely below this zone only.
 
Markets tend to volatile on expiry days hence one should not read too much into the ups and downs, mostly these movements are just there to extract favorable 'call/put settlements' by smart money. There was a good OI at 11K Puts which suggested that probably the expiry is going to come above 11k levels however it was not to be.
 
Now going forward we still hold on to our view that Nifty (probably) can go higher from here but for that to happen we must cross 11175-11220 levels. This zone is continuously acting as a resistance and nifty has tried 3 times to cross it but failed each time. However there is still a chance for markets to do that and if that happens will be extremely +ve for bulls. Intraday volatility is likely to be on higher side especially since global markets continue to be all over the place. On the downside 10900-940 zone is likely to offer support but no serious move on the downside is expected as long as 10850 holds.
 
Happy Trading!
 
 
 
 
 
 

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