At this juncture, last week Friday’s gap area of 11,210 – 11,185 will act as a strong support. Any sustainable move below this level will extend the ongoing profit booking towards 11,080 – 11,025 levels respectively, says Aditya Agarwal of Way2Wealth Brokers.
.After breaching the previous all-time high of 11,171.55 on the previous Friday, Nifty hit another milestone and registered a record high of 11,390.55 during Wednesday’s session.
The 25-bps rate hike in repo rate by RBI along with the hawkish stance by the US FOMC put pressure on emerging markets and our market, too, reacted and corrected sharply on Thursday.
Looking at the monthly chart, July month candle closed well above its previous all-time high of 11,171.55 which indicates that the broader trend is undoubtedly bullish; however, such move failed to get confirmed by the RSI (14) which signaled bearish divergence.
At this juncture, last week Friday’s gap area of 11,210 – 11,185 will act as a strong support. Any sustainable move below this level will extend the ongoing profit booking towards 11,080 – 11,025 levels, respectively.
Whereas on the higher side, 11,390 – 11,415 is a strong supply zone and surpassing this zone will allow Nifty to rally towards 11,500.
Options data also indicate that 11,500 will prove to be a stiff supply zone for Nifty. Maximum call writing has been seen at 11,500 option and any move towards those levels can be used by a trader to book profit in their long positions.
Similarly, on the lower side, put writing at 11,200 will act as an immediate support and below that Nifty can drift towards 11,000 levels.
Overall, for this month, we expect broader indices to trade between 11,000 and 11,500 levels before giving any fresh breakout.
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Source:https://www.moneycontrol.com/news/business/markets/nifty-likely-to-trade-around-11000-11500-this-month-ioc-vedanta-top-ideas-to-short-2799781.html
