On Tuesday, Nifty will face resistance at 11,045 and 11,150 levels, while supports will come in at 10,950 and 10,860 levels.
If we examine the technical setup from a very short-term perspective, the market remains overbought and lacks internal strength that it would otherwise need to sustain at such higher levels. The PCR of over 1.80 cannot be overlooked; lead indicators like RSI are also showing continued bearish divergence against the price.
It may so happen that the Index may be propelled higher by select stocks for some time. That would mean the absence of broader market participation.
We recommend short-term market participants to refrain from creating any significant long exposure and focus more on taking profits home at current levels.
Nifty Bank (22322) Technically 22432 is the logical target as long as 21500 holds’ the Nifty Bank unfolded as expected and achieved our target…technically 22500-800 is a zone of resistance and I would watch 22000 and trade long…