A decisive break above 11,700 will definitely offer a range breakout, which will further open the gates for the index to retest 12,000 levels
Traders should use any dip for creating fresh longs positions as long as we are trading above 11,250 in Nifty (spot).
The primary trend of the Nifty is positive as the index is trading above its 200-Day SMA
Buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,600-11,100 with a positive bias.
Going forward, 11,100 will act as immediate support for the Nifty, with 11,550 acting as next resistance, which is previous weeks high for the benchmark index
Nifty should trade in the range of 11,000-11,400 levels over the next few weeks while Bank Nifty can gain positive momentum once it crosses the 200-day average placed at 28,870 levels.
The whole eight percent rally seen after this announcement has fizzled out. This does not augur well for overall market breadth and signals further bearishness in midcaps and smallcaps
The intermediate hurdle on the upside is placed at 11,400 – 11,450 levels. Traders are advised to adopt a mean reversion technique for the index and watch out for opportunities in individual stocks.
From the technical front, the Nifty is still holding above its long-term moving averages and as far as prices are holding above 11,200 mark, we expect that the volatility is likely to grip the market within the broader range of 11,500-11,200.
Any close above 11,700 levels would result in further short covering which might push the Nifty to even 12,000 levels in coming months
Traders are advised to keep a tab of all the above mentioned levels and should focus on individual stocks that are likely to provide better trading opportunities
For the markets to extend the recent euphoria, the Nifty will have to clear the 11,700-mark.
In case of breakout, the index will face hurdle around its psychological level of 12,000.
Above 11800, Nifty could extend the gains towards 12000. Stock specific bullish move is expected to be there in the markets.
We need to be cautious while adding long positions at current levels. Put/Call ratio is at 1.48 and India VIX at 17% which indicates high risk in creating long positions on Indices, said Shrikant S. Chouhan, Senior Vice-President, Equity Technical Research at Kotak Securities.
Traders should continue to remain on the long side as we expect the Nifty to head towards 11,450-11,550 levels
Going ahead, there is a fair chance of markets attracting buying interest near the aforementioned mark 10,500, because in the past the zone of 10,800–10,500 was a demand zone for the Nifty.
FOMC meet outcome would be a key factor as there is a wide expectation of a rate cut. However, commentary on growth and rate outlook would be crucial.
The immediate support for Nifty is placed at 10,740 below which further selloff can be seen which could drag the Nifty50 towards 10,600 levels.
On the higher side, Nifty could move towards its immediate resistance level of 11,200. Any close above 11,200 levels would result in further short covering, which might push Nifty to 11,450 levels
We continue with optimistic stance and advice traders not to venture into taking any contra bets. The immediate supports for the index are placed around 10,945 and 10,890.
Nifty is likely to remain in the range of 10,740–11,100 and a move on either side would dictate the further trend.
Any big move on the higher side should be expected if Nifty50 closes above 11,200 levels on a sustained basis.
The Midcap and Smallcap stocks should be on the radar for higher trading returns in the short term.
A sustainable move above 10,900 could propel the index back towards the high of 11,141 but for a much stronger base confirmation the index needs to clear the 11,200 mark