On a Tuesday the Indian indices open lower and start recovery from their early trading session. The Nifty open in a gap down at 10815.40 and shot up to 11018.55 on a higher side and closed at 10948.25 gains 85.65 points where Banknifty gain 374 points and Sensex 277 points respectively. On Tuesday bank-nifty made a high of 28148.35 low 27503.90 and closed at 28022.10 and Sensex shoots up to 37241.75 on the higher side and made low of 36536.60 closed at 36976.85.
The Nifty took a breath after the continuous fall in a highly volatile market. But this is not a relaxation for the market. Still, the market is in downtrend and trading below its major resistance and moving averages. The Nifty is trading below 200 day MA and below the strong resistance area of 11000 to 11100.
For the trading day 07 August 2019, 10925 will be the key point for the Nifty. If the Nifty will trade and sustain above 10925 then it can move up to 11040 to 11100 and below of this 10800 will play the major support.
On the above spot Nifty 50 daily chart, it can be seen that the Nifty is below its 100 and 200 daily moving averages. Technically the Nifty is in downtrend and trading below of its major resistance is showing that this trend will continue. The Nifty can move up to 11000 or more if it breaks 10925 and if 10800 will be broken then the bears will continue to rule the market for few times. As per our view if the Nifty breaks the 10800 then the next support is 10580.
Continuous fall has changed the sentiment of the market, because of this the investors are taking interest to put the money. Highly volatility has also changed the mood of traders and now they are afraid to trade.
Trading range for the Nifty on 07th August 2019
Upside Resistance :- 10925, 11040 11100.
Downside Support :- 10800, 10725, 10600.