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By Sameet ChavanChief analyst – Technical derivatives, Angel Broking
Where are We Merry days continue for our markets after undergoing a stressful period of nearly five months.
The index managed to reclaim the 11,350 mark with authority, bringing the smile back on the faces of retail investors.
What is in Store With a technical point of view, the rally began after breaking out from a ‘Bullish Diamond’ pattern on the weekly chart in mid-July.
Since then, a series of bullish price developments has been observed.
Some would say the markets are overbought, but we do not want to be of that view as of now.
The structure of the market is still strong and some of the previous laggards, such as ICICI Bank, Axis Bank and several PSBs, have started to participate.
In addition, we had earlier spoken about the midcap index probably showing signs of a base formation.
What could Investors Do As far as levels are concerned, it’s just a matter of time before we hasten towards 11,430-11,500 levels.
Since, it’s an uncharted territory, further legs of the upside will keep unfolding as we move forward.
For the forthcoming week, 11,290, followed by 11,234, will be seen as an immediate support.
During the week, a lot of stocks from the cash segment started to show some life and are poised for decent upmoves.
One can look to target such potential candidates, which may offer good trading opportunities.
