The tussle between the bulls and the bears continue!
Bears are not letting the rally to sustain but the bulls are not letting go 11300!
The Nifty opened higher at 11378.5 and went up to 11437 but the last hour selling pressure brought it down to 11290 before settling at 11317.4 or 37.6 points down.
Here’s my observations from the daily chart of Nifty…
- Nifty has failed to fill the gap between 11452-11507 which is clearly a bearish sign.
- Nifty failed to cross the falling minor trend line.
- The large bearish engulfing pattern on 31/08/20 along with the weekly bearish engulfing patterns clearly establishes a top and the start of a larger correction.
Putting all things together, Nifty is likely to slide up to 10800-10850 below 11300 with minor support between 11111-11178.
Nifty Bank on the other hand is oversold on short term oscillator but is likely to fall up to 22300 before the Supreme Court verdict on loan moratorium to be announced on 10/09/20.
The outlook remains negative!
Here are the most oversold stocks based on my Swing Trading System. You may choose to enter on an intraday correction of 2-3%.
There’s along list of stocks which are oversold and I have selected the top 10 most oversold stocks. The long list of stock in my watchlist shows that the selling is across the board.
Out of yesterday’s watchlist, I have three open positions in JINDALSTEL (199.35), CANBK (99.65), TATA POWER (56.1). Let’s see how they perform over the next couple of days.
On the short side, all the three stocks, GRANULES, IDEA, and INFRATEL declined between 5-8% but I had no positions in them unfortunately as they could not reach my target selling price 🙁
Have s great trading day ahead!