President Trump Fuels Market Rally
President Trump’s optimistic tweet about the US-China Trade War triggered an extended bull run and pushed Nifty to a high of 10896 approx. The US President stated that trade negotiators had made “substantial progress” and that he will meet Chinese President Xi Jinping “to conclude an agreement”. Nifty had previously formed a dragonfly Doji last week which was an early sign of a potential upside swing in price as the value of the Call options gamma had neutralized on Friday. Today the market took the support of the pivot point around 10800 approx and surpassed the upside target of 10877. Going forward, the Bull market will continue only if Nifty sustains above tomorrow’s range low throughout the day.
Nifty witnessed a 95-points bull run in today’s session after US President Donald Trump tweeted about a possible settlement in the US-China Trade dispute. China’s Shanghai Composite jumped 5.6% intraday and acted as a confirmation of the tweet. Nifty bulls swung into action and took the support of around 10800 approx intraday. The index made a high of 10896 and is likely to continue the upside run if the buyers can defend tomorrow’s range low. Going forward, Nifty is likely to scale up to 10950 if it trades above tomorrow’s range high. On the other hand, if the index trades below tomorrow’s range low, it might roll down to 10800 approx.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 10880 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for the index is around 10885 approx. On the other hand, if Nifty trades below, tomorrow’s hourly range low, it is likely to roll down to 10792 approx.
Bank Nifty Options Data