HomeNewsBusinessMarketsNifty may move towards 11,500; these three bets could give up to 16% returns
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Nifty may move towards 11,500; these three bets could give up to 16% returns

Technically we believe the index is expected to swing above the upper bound of the 'Broadening formation (11,377)' & move towards 11,500 zone swiftly.

August 19, 2020 / 08:28 IST
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Sacchitanand Uttekar

Nifty50 registered its 4th 'Homing Pigeon' candlestick formation today since its first been established around the base of ongoing trend around 7,511. The recent pattern occurrence confirmed the elevated base & its 'make or break' level to be marked now at 11,111 for the ongoing upmove.

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The index has been consolidating within the 'Broadening formation' since last few weeks & today's breakout from its recent consolidation has been well supported with volumes as it helped the index register a strong close near its high point of the day.

As highlighted earlier, too, technically we believe the index is expected to swing above the upper bound of the 'Broadening formation (11,377)' & move towards 11,500 zone swiftly. While weakness if any would need validation below 11,100 from hereon. As Broadening formation is a consolidative pattern occurring in the final stages of the upmove, it is ideal to remain cautious & restrict trades to short term itself with more emphasis on stock specific trade setups.