Nifty Strategy for Today: Explaining the strategy on Nifty, CNBC-Awaaz’s Virendra Kumar said that the first resistance is visible at the level of 23384-23417. Whereas the biggest resistance is visible at the level of 23477-23519/23567 (20 DEMA). In this, the first base is visible at the level of 23236-23288. Whereas the big base is visible at the level of 23091/23143-23184. He said that buying the dip at exactly 23169 has worked. Looking at 10 DEMA, he advised booking profit at 23380.
He said that heavy selling of FIIs is still being seen. In this, net short contracts were seen at 3.33 lakh. In this, 10 DEMA is the first resistance while 23500-23600 is the zone of call writers. Heavy put writing is being seen at 23300. In this, maximum put writing is seen at 23200.
The index will still be in a period of uncertainty below 10 DEMA but 23200 seems to be a small base. Calculated risk should be taken in this. Due to good risk-reward, one should buy near the first base. The first resistance is a bit difficult zone, if it turns out to be then the levels of 23477-23519-23567 are possible. Will not short above 23091 in this
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strategy on bank nifty
Explaining the strategy on Banking Index, Virendra Kumar said that the first resistance is visible at 49465-49661. In this, big resistance is visible at the level of 49908/50010. In this, the first base is visible at the level of 48823-49043. Whereas the big base is visible at the level of 48533-48731.
He said that the index tested the highest level of 49627 after crossing the first resistance yesterday. All the big banks appeared to be at vital levels but Axis Bank appeared to be in a bad shape. In this, call writers were seen occupying the 49800-50000 zone.
Crossing 10 DEMA gave some confidence but still no positional trade was seen. He said that in this, buy the dip above the first base. Trade the first resistance. Above this, levels of 49818-49908 are possible. As long as the first base is there, the index may appear to be a safe trade. Difficulty will increase if it slips below 48823.
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