Although the overall trend has been strongly up, traders should still avoid aggressive bets
Better-than-expected Q2 GDP data numbers might help index to move in the positive territory
Nifty50 index also remains above the 20-day SMA and has now closed at a new life time high after clearing the recent highs of 12,963
We can witness a short-covering move along with the addition of a fresh position only if Nifty breaches 13,000.
Last week, we had witnessed a 'Bullish Flag' breakout around 12,050 and since then markets never looked back.
At current levels, midcap and smallcap stocks look more attractive than largecaps
For Nifty, 12,430.50 is the first level to watch, and post that, the theoretical target of the 'Flag' pattern is around 12,700
We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,300
Avenue Supermarts (DMart) is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if it moves above 2,300
Trading longs should have stoploss at 11,700 in Nifty
As per weekly option data, huge call writing on higher strikes ranging from 11,700 to 12,000 is witnessed which shows Nifty would face resistance in the zone of 11,800
For this week, 11,500 - 11,600 has now become an important support zone
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
We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,000
BankNifty index has broken out from the "Flag" pattern on the daily chart, which indicates a fresh momentum buying the Banking stocks
Previous top on the daily charts is placed at 11,794, which is likely to provide support to the index
The level of 11,000 will act as support for the Nifty as maximum put open interest (OI) is placed here
Banking stocks' gain on Friday may provide impetus for the extended rally going forward
Nifty could face firm support in sub 11,600-zone.11,600 will act as support as maximum put OI is placed here
Support for the Nifty is shifted up to 11,400, which should be kept as a stop loss in long positions. The upside target for Nifty is seen at 11,800 odd levels