For the last 12 trading sessions, markets
have remained directionless and consolidated in the range of 11,660 to 12,025. For the last two trading sessions, Nifty has been finding support at 21-day EMA. On October 27, Nifty reversed north and closed with the gain of more than 1 per cent. Nifty is forming a symmetrical triangle with “shortall” in place on the daily chart, which indicates that the chances of bullish breakout is higher than the bearish breakout. Immediate resistance for Nifty is seen in 12,000-12,050 zone and once that is taken out, we can expect Nifty to register new all-time high above 12,430. Support for the Nifty is seen at 11,740.
This stock has formed bullish “Hammer” candlestick pattern on the daily chart. Volumes have gone up along with the price rise in the recent past. Primary trend of the stock has been bullish with higher tops and higher bottoms on the daily and weekly charts. RSI and MACD are also showing strength in the current uptrend. Moreover, banking sector is likely to outperform in the short term.