ipuneet

ipuneet

Since Oct 2021, Nifty has corrected between 4.7 to 11.2 percent, every time it has closed below 20 VWMA (Low). The correction has lasted 24 to 54 days (21VWMA (Low to 21 VWMA (High) on day closing basis. The present decline has seen six sessions and 3.27 percent dip below 21VWMA (Low), already. We should not expect a recovery anytime soon.

ipuneet

17680-17730 area need to be crossed and sustained for comfort with long side trades. Besides being high of today (25/08) and 22/08, 17680 is Ichimoku's Tanken Sen level. 17376, 17738, 17216, 17155, 17094, 17018 are important support levels.

ipuneet

39500 - 39220 remain important resistance levels, 38846 (Tanken Sen), 38650 (13EMA) major supports. If broken, weakness will creep in for BankNifty too. 38400 - 38150 - 37940 - 37650 important support levels.

ipuneet

Hold / add hedged longs above 16250, breakout on price, RSI and MFI too. Significant improvement in breadth too. There may not be sharp up move on fuel price cut and other inflation control measures, but high probability it will strengthen Auto stocks further. Keep an eye on that space. Hedged positions only, Friday low strict stop loss even for hedged positions.