Day Trading Guide
The strong performance of mid-cap and smallcap indices, which have raced to new life highs ahead of the benchmark, confirms the bullish price structure. The current placement of index at upper band of short-term rising channel encompassing the upmove since December 2016 and previous gap down area placed at 8830 coupled with the overbought reading on stochastic oscillator on daily/ weekly scale warrants a round of consolidation, going forward. We believe one should adopt a buy on dips strategy as any intermediate cool off will attract strong demand at the elevated support base of 8650 region. We expect the index to eventually challenge its 2016 high of 8968 in the near term.