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Nifty - Playing Touch-and-Go with Traders

Touch-and-go, generally used to say that the result of a particular situation is uncertain and it is possible that something good or bad or unpleasant will happen.

Unpleasant - If Nifty breakdown 15400 level

Pleasent - If Nifty breakup 16000 level

For the last two months, Nifty is trading in a range, this is the smallest range ever, historically.

Long Term Investors don't care about it, but it is really harmful to traders, along with when India VIX is also breaking records to touch new lows, so option premiums are very low.

In the Nifty Monthly chart, one can see June and July 2021, which ends up with Dozi, which means indecisiveness.

From the below chart, one can see the past three months' data, and assume that what happened if DIIs, were not supporting the market by buying stocks selling harshly by FIIs. They are selling stocks like tomorrow will not come again.

Obviously, DIIs money is retailors money, which is coming through mutual funds in the stock market. But the main point is that even Covid19 has damaged our economy too much, still, our domestic fund managers are bullish on the future of the Indian stock market and growing economy.

Have a look at some of the daily numbers:

Nifty 1 Hour Chart is still confirming, that we have not broken the daily range from the last two months. How far DIIs, can support the market, we don't know.

The coming week will also continue seeing the zone of 15900-15950 as a stiff area of resistance for the markets.

The support on the lower side exists at 15600 and 15550. The trading range for the market is likely to remain wider than usual for the following week.

15400 is major support because at earlier week the PUT highest Option Interest majored on 15500, but it slipped to 15000 now. On the higher side still, 16000 is intact for call options.

Overall, the analysis for the coming week remains on similar lines.

The NIFTY will face stiff resistance at the 15900-15950 levels.

We continue maintaining strict trailing stop-losses while following the momentum on the upside.

While continuing to stay highly stock-specific, a defensive approach and vigilant protection of profit on either side are suggested over the coming week.

Thanks for reading

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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