25 Aug,2020 Nifty’s behaviour vis-à-vis this zone is going to be crucial. Any move beyond the 11,500

Markets have continued to display strong inherent liquidity-driven strength over the past couple of days. Nifty is yet to penetrate the 11,430-11,500 zone, as it has closed exactly in the middle of this resistance area created by a gap. Nifty’s behavior vis-à-vis this zone is going to be crucial. Any move beyond the 11,500 level will fuel more gains regardless of the precarious technical situation.

Pattern analysis showed Nifty has thwarted a possible breakdown by bouncing off the lower trend line support. This makes the 11,300-11,350 zone important support for Nifty. On the higher side, the market is looking to fill the gap in the 11,430-11,500 zone.

All in all, even though Nifty is making a fierce attempt to penetrate the 11,430-11,500 zone, it has not done so yet. Even if the index moves past this zone, it should not be taken for granted.

Investors should wait for confirmation on a breach of this zone even if the market continues to display strength. A weaker dollar is aiding markets, but the momentum should be chased with extreme caution. While traders may continue to follow the upside, any technical pullback in the Dollar Index can cause sharp and volatile disruption.

Broadly speaking, we expect banking and financial stocks to continue relatively outperformance over the broader market.

Nifty Bank (22833) Technically now 22250 is a crucial support to work with and upside to 22573 is a possibility’ the Nifty Bank unfolded as expected and achieved our target and has closed in the green…technically the next technical targets are now 23195 and beyond that to 23395 is possible as long as 22572 holds…

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