Daily Nifty Update – 20 June 2019 .. No negative surprise from FED

 

Indian benchmark indices ended with solid gains across the board on Thursday, supported by the positive global environment. A dovish US Federal Reserve, after the FED meeting, kept the interest rates unchanged but opened the possibility of a possible rate cut in the future. This led to a global rally in stocks.

After opening gap-down, key indices recovered immediately in morning trade and continued rising on the back of short covering by traders as the day progressed.

 

Source : NSE

As guessed correctly yesterday, “as & when Nifty closes below 11635 otherwise a small pullback is also possible” did happen but the pullback is a 1%+ kind of rally. I would not read too much into it as it is more backed by short covering than long buildup. There are some important issues lining up in the near future like the poor progress of monsoon, NBFC crisis: Record Rs 1.1 lakh crore loans due over 90 days, etc which will prevent the market from having a runaway rally. 

 

Nifty Daily

 

Intraday traders had a buy and hold day 🙂 as and when their long signals were triggered. On the hourly charts, Nifty has broken out of a Falling Channel which in itself is bullish. But there is a good amount of overhead resistance and again a breakdown below 11775 will nullify the channel breakout. In any case, limited upside. 

 

Nifty Hourly

 

 

 

 

Daily Nifty Update – 20 June 2019 .. No negative surprise from FED
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