Hot Stocks | Deepak Fertilisers, Kaveri Seed, Fine Organic three short term trading ideas
Episode 2719, Jul 21, 2020, 12:30 AM
Nifty continued its northward journey for the fourth day on the trot on July 20. The index conquered 11,000 levels to close at a four-month high level at 11,022, the highest since March 5.
Last Friday, Nifty managed to close above its last 10-day trading range, confirming the breakout from the narrow range. It also managed to close above its 200-day SMA, only after February 2020.
Nifty has also witnessed a bullish dominance by +DMI and ADX on the daily chart. Whenever Nifty witnesses such formation on ADX indicator, it tends to move higher.
Earlier resistance of 10,800-10,850 level would interchange its role as a support.
On the derivatives front, we have seen Put writing at 10,800-11,000 levels. The 5-day SMA is placed at 10,778 levels.
Therefore, 10,800-10,850 level would act as immediate support for Nifty. On the higher side, resistance is seen around 11,200-11,250 level.
After running corrections for few days, mid and small-cap Indices resumed their uptrend again last Friday.
The advance-decline ratio was positive for the last two days. We believe that small-caps, which outperformed the benchmark Index during this rally, will continue their outperformance for the coming weeks also.