Will Nifty take a halt near 23800 ahead of BRICS Summit, or head for 23500?
The support has shifted to 23600 and 24000-24100 becomes resistance.
As of 10:03 IST, 7 Sept
Nifty is trading at 23800 (-0.40%) Today, after re-testing the psychological support of 24000 post breakdown on Thursday and trading choppy between 23900-24000 on Friday.
Below 23780, selling in the market may intensify to 23600-23500 levels.
While holding above 23800 may keep the market range bound, with a probability of intraday bounce to 23900, overall technical structure remains bearish in the market, and may nullify only above 24300.
Option writing activity is suggesting higher Call writing, with PCR at 0.62.
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By closing below 24000 Nifty has entered into the larger picture with downside potential to 23000-22500. Read below…
01 The Larger Picture
Nifty completed 61.8% retracement the entire fall at 24752 during consolidation, and has now breached below the trend line support of 24000, resuming down trend to 23000-22500 level.
23600-23500 zone may act as 1st deterrence level post breakdown below 24000, on oversold readings and short-covering leading to re-testing of breakdown area near 24000 and BRICS positive optimism from BRICS summit.
BoJ Interest rate policy is the key event to watch out for which may act as trigger for rest of the Macro issues surfacing in the market dynamics, and a global sell-off scenario.
Tips disappears, Tradzo stands with you.
02 Key Macro Risks Ahead
- 1.Probability of US sanction based Tariffs on India & China near BRICS summit.
- 2.Crude & Refining capacity around the world translating inflation in downstream crude products, Ureas shortage leading food security concerns
- 3.Escalation of US-Iran war to entire West Asia
- 4.Escalation from Pakistan front as US proxy to sabotage BRICS agenda of new global monetary system bypassing the US Dollar.
- 5.US Debt & housing collapse due to unwinding of Yen carry trade.
- 6.AI Bubble burst - AI maybe becoming popular and very successful tools in the right hands but for majority its just new dopamine, with sky high valuations and no signs of profits.
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Tradzo Research
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