Today Nifty has opened on strong note and found initial resistance near 13450 level in the morning. This has resulted in sharp correction towards 13192 level. By afternoon, Europe markets opened with good gains supported Indian market too. This lead to sharp recovery in Nifty and its closed at day’s high.
What lies ahead?
No doubt Nifty has a rough start in the opening but able to defend its key support level of 13131 (Previous Day’s low). As long as this holds, we can see nifty to trade with positive biased. To resume uptrend Nifty has to break 13770 level than we can see 14000 level in Nifty. Traders must use dip to enter into the stocks to make handsome return. Still we feel that traders should be cautious as probability of Nifty going down is still not ruled out on the back of corona virus cases.
The key positive for emerging markets like India that US Congress has cleared stimulus package of $900 billion. This can add further liquidity of cash rushing to our country as United States has low interest rates. Have a look on Nifty chart: