Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
On the back of positive cues from the Asian markets, Nifty started trading with another gap up opening above 11100. The index then consolidated with a positive bias and ended the session with gains of over 140 points.
The bulls had a head start for this week yesterday and it was followed by another gap up opening in today’s session. Both the Nifty as well as Bank Nifty traded with a positive bias and added decent gains to yesterday’s close. However, participation from the index heavyweights held the market positive but it was a muted session for the midcap space.
The Nifty has now almost reached our expected target area of 11200 which is the 78.6% of the previous correction. Traders can look to book some profits on their existing longs around this area and take some money off the table; but by no means one should preempt any contra moves as there are no signs of reversal as of now.
Identifying potential movers and trading with a stock specific approach would be a better strategy for short term. The immediate supports for Nifty are placed around 11085 and 11000 whereas resistances are seen around 11190 and 11220. (Share Manthan, 21st July, 2020)
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