Morning Mantra - 31st July 2023

Dear All,

Just as we had stated in the last week , about witnessing a supply pressure in Nifty as a result of observing a Shooting Star formation on the weekly chart. Likewise, the same was observed in the previous week itself.

Now for this week, as per the Day chart setup, we can observe a Doji formation on the chart. Which altogether indicates that in a very short term, we can get to witness a little bounce back in Nifty. However, on the other hand, as per the Weekly chart, there’s still an indication of a little supply pressure.

Although we had already stated about the necessity of witnessing either a breakout of 19800 or breakout of 19550 in Nifty. So, according to that Nifty took a beautiful support just around our stated level of 19550, as it made a low of 19563 on the last Friday.

Therefore, on this positive note we are still with our words that the overall market sentiments still seem to be positive. So, with the stop loss of 19550, continue rebalancing your portfolio and keep following the Cherry picking strategy, for now.

Regards,
Alok Daiya
SEBI Registered Research Analyst