Current chart formation suggests Nifty may find major support around 11,650 which is well-supported by a 21-day exponential moving average.
Put writers still hold the maximum open interest at 11,900 strikes which should act as immediate support for Nifty in the coming sessions.
Neeraj Chadawar of Axis Securities believes that the equity will continue to trade on higher multiples for some more time.
Nifty Midcap and Nifty Smallcap indices have outperformed gaining 3.1 percent and 4.3 percent, respectively, while Nifty has gained 1.2 percent in the week to date.
Liquidity driven rally has almost completed 78.60 percent retracement of the entire downswing seen from January 2020 top to March 2020 bottom.
Technically the index has been scaling higher with narrow ranged candles but the momentum indicators are diverging & indicating lack of strength.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
Experts continue to warn that the market will keep oscillating between rise and fall and one must remain cautious while taking a call for trade.
While the banks and NBFCs have been dominating the benchmark indices, market experts say emerging sectors such as pharma are gearing up to take the front seat.
On March 25, the Indian benchmark index witnessed sharp short-covering majorly due to an extremely oversold oscillator and hope of an economic stimulus package to soften the blow from the lockdown.
As far as levels are concerned, 8,000-8,100 levels are key resistance levels for the Nifty which should cap any sharp upside.
Mitesh Thakkar of miteshthakkar.com suggests buying HDFC with a stop loss of Rs 2127 for target of Rs 2060.
Sudarshan Sukhani of s2analytics.com recommends buying Asian Paints with stop loss at Rs 1825 and target of Rs 1890 and Pidilite Industries with stop loss at Rs 1540 and target of Rs 1645.
Mitesh Thakkar of miteshthakkar.com suggests selling Bajaj Finserv with a stop loss of Rs 9450 for target of Rs 9240 and Container Corp with a stop loss of Rs 526 for target of Rs 495.
Sudarshan Sukhani of s2analytics.com advises buying Asian Paint with stop loss at Rs 1,760 and target of Rs 1,820.
Sudarshan Sukhani of s2analytics.com recommends buying Castrol India with stop loss at Rs 149 for target of Rs 165 and Manappuram Finance with stop loss at Rs 160 and target of Rs 185.
Ashwani Gujral of ashwanigujral.com recommends buying Cholamandalam Investment with a stop loss of Rs 324, target of Rs 338 and State Bank of India with a stop loss of Rs 319, target of Rs 334.
VK Vijaykumar of Geojit Financial Service feels the proposed AIF is better than the earlier one since this also includes projects referred to NCLT.
The index during the entire up-move of the last two months is seen sustaining above the rising trendline joining last two months lows signalling buying demand at its elevated support base
According to Kotak Institutional Equitie , companies under its universe may see 0-18 percent earnings growth in the current financial year.
For the rally to sustain, the index needs to close above 11,150-11,181 on a sustainable basis for any bounce back towards 11,350 levels.
As long term moving averages on weekly charts are placed there while on higher side 11,000 levels should act as key psychological level for Nifty.
The Nifty is trading below 20, 50 and 100-day SMA's which are important short term moving average, indicating negative bias in the short term
Sudarshan Sukhani of s2analytics.com recommends buying Mindtree with stop loss of Rs 702 and target of Rs 725 and Pidilite Industries with stop loss at Rs 1215 and target of Rs 1255.
Mitessh Thakkar of mitesshthakkar.com recommends buying ICICI Bank with a stop loss of Rs 424 and target of Rs 440 and Pidilite Industries with a stop loss of Rs 1224 and target of Rs 1270.