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'Nifty can fall to 11,425; create short positions by buying Put options'

Except for Nifty PSU bank and Nifty FMCG other indices are showing signs of weakness. Select stocks from above indices should be added on declines with a medium-term view

July 08, 2019 / 09:26 AM IST

On the Budget day, the market formed a significant trend reversal formation. Nifty failed to surpass the previous high, placed at 12,100 and closed lower below 11,850, which is grossly negative for the market.

It implies that the market participants are disappointed and should trigger further damage to the market. Technically, Nifty is heading for 11,590 with minor support placed at 11,680.

In technical analysis, charts are the same for every analyst but interpretations of those charts are different. So, we need to go through with the majority of such interpretations.

1. Before expecting further weakness, Nifty needs to trade below the lowest of July 5 session (11,790). The highest and lowest levels of the event day are equally important as the importance of broader formation.