Market Update

23600 becomes new support anchor for Nifty, 24000 a key resistance level.

Nifty Daily Chart

Support levels: 23600 Resistance levels: 24000

Nifty gained 200 points to close near 24000 ahead of Fed meet, as Trump’s war rhetoric takes a step back ahead of key event, similarly before Geneva, BoJ Policy meet in June, along with that Trump taking U-turn when crude goes above $100/bbl or US 10Y yields above 4.7%, no longer looks like a coincidence.

The question is how do you trade or predict Trump’s next move?

Look for the obvious patterns and be ready to trade on both the side of market without trying to prove a logic as market could stay irrational for longer, while being very cautious on the long side, till the distraction is clouding the reality and Yen remains soft cushioning carry trade.

Technically till Nifty is in triangular consolidation of 24500 to 23600 on daily chart, play the range with a support of 23700. On the hourly chart look for signs of fatigue in the market near overbought levels and reversal on hourly chart to take a contra bet.

While a breakdown below 23600 resume the primary down move to 22500-22000, sustaining above 24000 may lead a rally to 24500. As the market range narrows the moves may become sharper.

Tradzo Research
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