Nifty is Set to Break Previous Resistance Point- Suggest SGX Nifty

Information as per data available on 14-04-2014 time: 7:29 A.M.

This morning SGX Nifty is indicating a strong opening of our Stock Market. With a gain of 1.71% in its morning trade. This indicate that there is high probability of crossing previous hurdle of 9131 level on Nifty chart. In case this happens then it will be a confirmation of an up move. Since Nifty has already formed a double bottom pattern. From last 4-5 trading session, it is finding tough to cross this level.

This can trigger a further up move in Nifty with a near term target of 9500 level. Have a look on Nifty chart.

Data from Icharts

Reason for this Up Move

  • March 2020 was the worst month in the history of stock markets around the world. Covid 19 has proved to be villain and resulted in fall of 30% to 40% in their stock prices.
  • Recently all these markets have recovered from their lows on the back of reduction in corona virus cases in major impacted countries like Spain, Italy and Iran. Even United Nation is seeing some respite in these cases. This has provided a hope to these markets that corona virus cases will reduce further in coming days.
  • This has fulled the US stock markets, as they have recouped more than half of their losses in the month of April and this has also supported the rise in Global Markets. Have a look on Dow Jones US indices.

Data from Google
  • Oil prices have seen there worst fall on the back of covid 19 issue. At the same time, there was a rift between Russia and Opec countries on Production cut and oil prices. Two days back Opec countries have agreed to cut 9.7 million barrel and ended this rift too. This is also positive for our Indian Market too.

Clues for the day

  1. At 10 a.m, our honorable Prime Minister Narendra Modi will address the nation on the prevalent lock down situation. This will provide the direction to stand still economy.
  2. Global clues are in positive territory with probability of crossing immediate resistance of Nifty. This will be positive for our market. As this will confirm the Double Bottom Bullish pattern break out.
  3. Reduction of corona virus cases around the world.

How to trade for today?

Today strategy is to go long with a target of 9200 level on Nifty future and strict stop loss of 9000 level.

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