How to trade Nifty ahead of monthly expiry? Kunal Shah does some chart reading
NEW DELHI: If Nifty fails to sustain above 19250, it's likely to experience a significant downward movement, says Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities. “This potential downside could extend towards the levels of 19000 and 18900. In this scenario, a cautious approach is advised, considering the prevailing selling sentiment,” he says in an interview. Edited excerpts:
RIL, which ended the week down over 3%, was the biggest drag on Nifty during the week even when buying was seen in financials and IT stocks. How does the Nifty trade setup look ahead of the monthly expiry?
During the entire August series, the index has encountered consistent selling pressure from elevated levels.
A notable resistance zone was established around 19500-19700, where the bears exerted their influence. This has resulted in a bearish undertone for the index.The critical level to monitor is 19250. If the index fails to sustain above this mark, it's likely to experience a significant downward movement.
This potential downside could extend towards the levels of 19000 and 18900. In this scenario, a cautious approach is advised, considering the prevailing selling sentiment.
Suzlon was in focus once again as it rallied 13% in the week. What would be your trading strategy here?
Suzlon has experienced a robust rally over the past few months and currently maintains its position above critical moving averages.
