Week 10-2020 Mid Update

With reference to our week 09-2020 closing notes (link here) it was predicted  that 39800 +/- 100 is the highest possible resistance which need to be broken on closing basis for further uptrend to continue. On 03-March, index made a high of 39866 and got rejected, triggering the red cycle once again. 

DoD basis, market cap gained on the first trading day of week and market posted recovery of several hundred points but began to lose momentum after hitting intraday resistance the next day. We attribute this drop to profit taking by value investor who has been buying during the Corona virus slump of equities market. 

Looking forward, as per our previous post we expect  37900-37700 +/- 100 to be interim support where value buying will be seen as index does not have much space on the lower side in short term. Trading is expected to remain range bound as long as Corona virus scare exist. Continuous down fall may push the support zone lower. 

Happy Trading!