INSUBCONTINENT EXCLUSIVE:
BY SANDEEP PORWAL TECHNICAL AND DERIVATIVES ANALYST, ASHIKA STOCK BROKINGWhere we are: The last couple of weeks remained action-packed as
market participants saw an unusual rise in volatility
Yet again, the level of 12000 acted as a strong support
Despite a sharp fall, the index managed a close above the key level and traded higher
The short-lived pullback followed by a sharp rally indicates a tussle between the bulls and the bears
Nifty PSU Bank and Nifty Energy were key underperformers in the week gone by while Nifty Realty bucked the downtrend and topped the charts
In this phase of uncertainty traders/investors lapped up small-cap stocks too; this index had shown relative strength in the week gone
by.
What is in store? The level of 12300 continues to remain a strong resistance as multiple attempts by bulls to surpass it failed for the
However, sharp reversal from the intermediate lows indicates bias turned bullish; in the event of a close above the 12300-12350, we are
likely to see an extension of a rally
Nifty Bank is trading above its 20 - 50 DMA, which are placed at 32070 - 31540, respectively
Thus, expect a follow-up buying up to the level of 32610 in the coming trading sessions.
What could investors do? The technical setup
suggests that long-awaited small and midcap rally may take place
Thus, one can look to add quality stocks from the respective space
We recommend the addition of longs in M-M, Exide, Apollo Tyres and Shoppers Stop while sell on the rise is advised in RIL.