Mazhar Mohammad said on the way upside 11,920 can be an initial target for this upswing and a decisive close above 11,930 can eventually lead to life time highs around 12,100
Bulls were back in full force on Dalal Street. Nifty surged and reclaimed 11,800 level on June 20 amid short covering in beaten down stocks and after Federal Reserve hinted rate cuts in the next year.
The index rallied 140 points and formed large bullish candle that resembles Long White Day or Bullish Engulfing on daily charts, indicating the way towards psychological 12,000 level in coming sessions, experts said, adding stability in volatility could again take the market towards upper band of the trading range.
India VIX fell 4.96 percent to 14 level.
Nifty opened lower at 11,653.65, which was also an intraday low, but recouped losses in the initial hour itself and extended rally as the day progressed to hit day's high of 11,843.50. The index closed 140.30 points or 1.20 percent higher at 11,831.80.
On the way upside, 11,920 can be an initial target for this upswing and a decisive close above 11,930 can eventually lead to the test of life-time highs present around 12,100," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in said.
As the current strength is suggesting near-term bottom is placed around 11,625, any dip, preferably in the zone of 11,790–11,740, owing to profit booking can be considered as an opportunity to create fresh longs, he added.
For Nifty options, maximum Put open interest (OI) was at 11,700 followed by 11500 while maximum Call OI was at 12,000 followed by 12,200. Call writing was seen at 12,200 followed by 12,100 while Put writing was seen at 11,800 followed by 11,700.
Experts feel options data suggests a slight shift in range to 11,650-12,000.
Bank Nifty managed to hold its crucial support of 30,200-30,250 and witnessed strong buying interest towards 30,830. The index closed 419 points higher at 30,781.10.
It formed a bullish candle on the daily scale and finally surpassed its crucial hurdle of 30,600."Now till it holds above 30,600, it could extend its gains towards 31,000, then 31,313; while on the downside, supports are seen at 30,500, then 30,250," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.The Great Diwali Discount!
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