Mr. Devang Shah (Technical Analyst, Angel Broking Ltd)
"Friday's correction was followed today by a mildly bullish start amid mixed Asian cues. Global uncertainties continued to hover over the market initially but the market gained momentum to witness a sharp rally & ended the day at an all-time high.
Nifty index managed to sustain a flag pattern breakout on daily charts the formation of which, had started in May mid. It has bounced back from its 38.2% retracement level continuing its formation of higher tops and higher bottoms on weekly charts indicating steady strength in the index.
As far as levels are concerned, we have closed near an intraday hurdle of 12100-12130; but looking at today's late surge, a possibility of surpassing and then extending this move towards 12240 - 12280 cannot be ruled out.
Traders should keep a tab on this and on the flipside, 12000 followed by 11920 would now be seen as key support levels.
Today's move was mainly initiated by Heavyweights such as Autos, Metals & FMCG counters. Not to forget, midcap universe has been showing resilience since past few days. We have already seen a good recovery from the lows and expect further upmove to unfold, which would eventually bring back the cheer on many traders / investors faces. We expect volatile momentum to continue ahead of RBI policy statement, to be issued on 6th of June, 2019."