Nifty, Bank Nifty trend reversal from positive to neutral will happen below 11,650 and 23,450, Anil Singhvi says
The stock markets on Wednesday respected the crucial levels despite Nifty losing 160 points or 1.3 per cent. On Thursday, which is the monthly expiry day, if the markets fall below these levels, will there be a trend or sentiment reversal that investors have to watch out for and take action as necessary? Zee Business Managing Editor Anil Singhvi gives his take on the issue
The stock markets on Wednesday respected the crucial levels despite Nifty losing 160 points or 1.3 per cent. On Thursday, which is the monthly expiry day, if the markets fall below these levels, will there be a trend or sentiment reversal that investors have to watch out for and take action as necessary? Zee Business Managing Editor Anil Singhvi gives his take on the issue.
The Market Guru said that he considered a range between 11,660 and 11680 to be a strong support zone. If the markets fall below this range, then the doors open for levels between 11,525 and 11,550. That will be a final target, going forward, the Managing Editor said.
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11650 के नीचे बंद होने पर ही बदलेगा ट्रेंड...
अनिल सिंघवी- बाजार के लिए आज और कल का सेशन बेहद अहम... इन 2 ट्रेडिंग सेशन से तय होगा कि तेजी के ट्रेंड में हैं या नहीं, 11650 और 23450 के नीचे बंद होने पर ट्रेंड पॉजिटिव से न्यूट्रल होगा#EditorsTake #Nifty #NiftyBank @AnilSinghvi_ pic.twitter.com/3c2xHelJKi
— Zee Business (@ZeeBusiness) October 29, 2020
On the issue of trend reversal, Singhvi said that it will be important to see where the markets close today. Though he still sees a positive trend, the trend reversal from positive to neutral will happen only if the Nifty ends below 11,650, he said.
If the markets end above this level today, then the correction could be construed as timewise activity. Below this level, the downward risks open-up, he further said.
On the day of expiry, the situation is slightly different he said adding that on usual days, if the market ended below 11,650, it could be easily said that there was a trend reversal. There have been instances before when the markets have collapsed on the day of expiry only to bounce back in the very next trading session.
Data cannot be the only thing one must look at while gauging the mood of the markets on the day of expiry, the Managing Editor said.
On the day of monthly expiry, the positions increase. He said that he would wait for another trading session to know the trend if markets end below 11,650 on Thursday. It is another thing if the markets today end below 11,500, indicating a complete breakdown.
The trading session on Thursday and Friday will be a barometer on what the existing trend would be, Singhvi said.
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As for Bank Nifty he saw 23,850 as an important level. The risk will increase if it closes below this level. The trend reversal will be there from positive to neutral only if the closing is below 23,450.
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