Stay cautious in Nifty, support at 9070: Stewart & Mackertich
According to Stewart & Mackertich, support for Nifty is at 9090, 9070 while the Index has resistance at 9200, 9220.
Stewart & Mackertich’s Market Report:
Nifty ended 0.37 percent down at 9105.15. Early morning positive momentum helped Nifty to trade above 9200, day’s high was 9217.90, but reacted down sharply towards the end of the session, hitting day’s low at 9095.45 breaching support level of 9110. 9090 may continue to act as pivotal support. Pivotal resistance is placed around 9200.
Considering Nifty multiple time frames and overall chart pattern that shows; Nifty may take cues from the key result announcements of YES Bank and IndusInd Bank tomorrow and it may be a shorter-term trend determining factor for Nifty.
However, negative divergence in daily RSI may be a concern. Hence, traders and investors are advised to be extremely cautious here on as the Nifty daily chart looks extremely overbought at this juncture. However, “trend following with strict trailing stop loss” trading strategy is advised.
Nifty crucial supports & resistances—
Supports- 9090, 9070
Resistances- 9200, 9220.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.