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Nifty Daily

31 Aug 2020 ‚óŹ 02:25 PM

LONG%

SHORT%

83%

17%

Position Sizing model - Long % = percentage of indicators bullish v/s Short % = number of indicators bearish, Including both daily and weekly time frames.

  NIFTY          
 TIME TREND Up Level   Down Level
 Short term trend Up 11860 11528-11315

Big candle followed the decline in the broad market as news of border issues created a selling spree and we hvae huge volumes for the day. If this selling volumes was on a normal day [not news driven], it would be a bad sign. End of day monthly momentum crosses to buy side confirming bigger picture. Daily charts we close just above the 20dma so short term we are back at support levels that need to hold for the upmove to resume from here itself. 11340 needs to hold on a closing basis and we are good to go on. But clearly nifty has been a laggard for a while so what will lead? Banks were the breakout sector last week and so they should lead. Midcaps have corrected and so they should slowly come back as well. The midcap indices also closed just above the 20dma. The daily momentum is crossing over again but has been unreliable in this rally.  

Gaps filled trendlines broken, this chart is not pretty. The immediate swing low support is at 11292 on this and if that breaks it is 11111. A move back above 11460 maybe a good sign. 

The swing went right down to 9, the lowest reading since June. So this is a bottom reading unless the world is coming to an end and war starts tomorrow morning between India and China. 

  BANK NIFTY        
 TIME TREND  Up Level   Down Level
 Short term trend Up  25670-26300  23577-22416

The RSI is back at 63 so it creates a lot of room for the upmove to continue. The daily momentum remains in buy mode for bank nifty and the decline is minor wave iv of iii so a few more waves on the upside are pending and should take us toward 25670 and 26300 eventually. Bank nifty cound support near the 40 hour average at 23577. The 20dma is the major pivot far lower at 22416. Unlike other indices bank nifty is holding far above the 20dma and momentum being in buy mode indicates that it is stronger yet and would lead the way higher again.

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