Nifty at 200 DMA; 11108-11140 key support range: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"Although the index started trading for the week on a flat note, it witnessed selling pressure from the opening ticks itself and corrected to end the session tad below 11200.
In last three weeks, the index has largely been dominated by the bears wherein Nifty has corrected by almost 7 percent from the budget day's high. In this correction, not only the mid-cap & small-cap stocks but some of the recent outperformers too have corrected sharply from their respective highs. Now, technically, the index has approached its '200 DMA' which is placed around 11140. This average is a popular indicator amongst traders & investors and a correction towards this average in a higher degree uptrend is seen as a buying opportunity by many. Also, the swing low of May 2019 is placed around 11108 and hence, 11108-11140 is seen as a crucial support range for the index. There is a probability of a pullback move from this support range but the overall market breadth needs to improve for sustainability of any upmove. The immediate resistance for the index is seen around 11300 and a move above the same could lead to a pullback towards 11400-11450. Having said that, until there are any signs of reversal on the price front, traders are advised to avoid aggressive positions and trade with proper risk management strategy."