We expect some consolidation with a positive bias. On the other hand, 8350 and previous resistance of 8300 would now be seen as a strong support zone for the index, says Angel Broking.
Angel Broking's Technical & Derivatives Report:
Although, we can see Nifty ending in the green, the overall intraday movement was quite range bound and lethargic. The index opened higher as indicated by the SGX Nifty and then corrected marginally in initial trades.
However, due to tail end buying the benchmark index managed to regain strength to reclaim the 8400 mark. Clearly, the optimism continued in our markets, however, the leading contributor (banking index) saw some profit booking at higher levels and as a result, we did not see a strong intraday rally similar to what witnessed a day before yesterday.
However, the undertone still remains bullish and we expect the Nifty to gradually move towards our mentioned level of 8450.
Going forward, it must be noted that the Nifty has already given a spectacular rally of 500 point in a short span and thus, we expect some consolidation with a positive bias. On the other hand, 8350 and previous resistance of 8300 would now be seen as a strong support zone for the index.
At current juncture, traders are advised to follow stock centric approach as they may fetch higher returns as compared to the index.
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