The "bear market" rally which started from the recent lows of ~25600/~7500 is nearing its first major resistance zone.
While the markets are poised comfortably above major support zones, the region from 31700-32600 (9300-9600) is a major resistance/supply zone.
In the near term, the worst-case scenario could be that the markets consolidate around the current levels, before moving up and the best-case scenario would be that ~32600/9600 is taken out effortlessly in this week.
Continue to remain long/add to your longs. Conservative traders can keep a closing SL at 30960/9080.
Avoid trading in stocks outside the F&O universe and keep SL at the stock level as well as at the Sensex/Nifty level.
| Date | 20-Apr-20 | |
| Index | Sensex | Nifty |
| S2 | 31,362 | 9,200 |
| S1 | 31,423 | 9,218 |
| Previous Close | 31,588.72 | 9,266.75 |
| R1 | 31,686 | 9,295 |
| R2 | 32,393 | 9,503 |
| Fair Value | 34,426 | 10,099 |
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