Short-term trend of Nifty is positive
The market made strong gains buoyed by the government move to withdraw additional surcharge on foreign investors and initiate measures to revive the economy.
The Sensex settled with a gain of 2.16 per cent or 792.96 points, while the NSE Nifty ended 2.11 per cent or 228.50 points higher.
Broader BSE Mid-Cap and Small-Cap indices rose up to 1.65 per cent.
Technical View
According to analysts, the short term trend of the Nifty is positive and the market is now likely to head towards the key overhead resistance of 11150 levels in the next few sessions.
"In our sense this rally has further legs to unfold and immediately, we expect it to get extended towards 11150 - 11250 levels. Hence, traders are advised not to take any contradictory bets and should rather use dips to go long. Ideally, the stock specific approach would fetch better opportunities and hence, one should keep focusing on such potential candidates. As far as support is concerned, 11000 followed by 10930 would be seen as immediate levels for the index," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
Market View
The Index seems to have formed a short term bottom and it has started to form higher tops and higher bottoms on the hourly charts. The index seems to have completed a five wave declining structure on the weekly charts and it is doing retracement of the same, analysts said.
"The short term target is 11200 which is the 200DMA which also coincides with the 38.2 per cent retracement level of the entire fall," Jay Thakkar Head Technical and Derivatives Research - AVP Equity Research, Anand Rathi Shares said.
"The recent volatility indicates excessive pessimism among the participants and we do not see this fading away anytime soon. Besides, we've scheduled derivatives expiry on Thursday i.e. on August 29 and that would further add to choppiness. We advise using further rebound to reduce longs as Nifty has strong hurdle at 1125011300 zone," Ajit Mishra Vice President, Research, Religare Broking said.