10875 – 10920 zone will be a strong supply zone and only sustainable move above this level will bring some relief rally to our market.
If the smallcap index manages to hold above the 5670 levels on a closing basis, a meaningful bounce back is likely in the sector.
We maintain our stance that convergence between the broader market and the benchmark index is essential for any sustainable move.
The first half of the week gone by has been fantastic for benchmarks. In the process, Nifty has managed to surpass its multi-month hurdle of 11,000
If Nifty manages to hold above the 11,050-11,100 zone convincingly, it could trigger the mid and small-cap stocks to play catch up in the near term.
11100 is expected to act as immediate resistance for the Nifty. A sustained trade above 11100 may induce rally towards 11300-11400 over the short term.
A prudent strategy would be to keep focusing on individual stocks which have shown tremendous resilience despite recent uncertainty in the market.
Sustained trades above 10,800 may induce a rally towards 11,000 levels in February series.
Broader indices continue to get battered as Midcaps and Smallcaps are going through a rough patch once again and it could continue further as well.
Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.
Continue with a stock-specific trading approach in the meanwhile and maintaining positions on both sides. Also, keeping close watch on earnings announcements and global markets for cues.
During a week under review, the Nifty index managed to sustain above its long-term moving averages on a closing basis, and also managed to close above 20-day EMA resistance placed around 10,821
We expect stock-specific performance to continue as earnings season gathers pace while we expect the index to strengthen above December-high of 10,985, says Dharmesh Shah of ICICI Direct.com.
If the index trades above 11000 consistently then it may induce a rally towards 11200. On the other hand, breakdown below 10700 may trigger a short-term bearish move in the market.
We expect Nifty to trade with a positive bias and any decisive move above 11,000 levels will definitely add further buying momentum towards 11,100 levels this week.
Breakdown below 10,700 would push Nifty towards 10,500. We advise traders to maintain positions on both sides and keeping leveraged positions hedged, says Jayant Manglik of Religare Broking.
If the index manages to breach 11000 levels and sustain above that than another round of short covering is expected that may drive Nifty towards 11,200 levels in the coming weeks.
Going forward, any decline towards 10700, its long term 200-DEMA should be a good opportunity to re-enter.
On the higher end, the Nifty may move towards 11,000. On the other hand, support is pegged at 10,700
On the technical front, 10,650-10,700 spot is a strong support zone for the index
Short-term moving average of 8-days has been trading above the 21-days moving average, which indicates short-term uptrend for the Nifty.
The Nifty formed a long bearish candlestick pattern on both weekly and daily price chart suggesting sell-off pressure in both time frames
Contra trades can be considered such as going long on the decline on the Nifty Jan Futures in the 10,500-10,550 zone and keeping a strict stop loss around the 10,480 levels.
A decisive fall below 10,680 may trigger a bigger correction in the market. On the other hand, resistance is seen at 10,930.
We expect that the current trend is likely to continue towards the north and on the technical front any break above 11,000 levels will definitely add further buying momentum towards 11,100 levels in Nifty.