Index resumes positive momentum from its support: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"After the mid-week holiday, the Nifty started today's session marginally positive. However, it witnessed some selling pressure in the first hour of the trade and tested the crucial support of 11100. The indices then witnessed buying momentum from this support and the momentum accelerated as the day progressed to end with gains of over 180 points.
The Nifty tested the support of 11100 in the first hour of the trade today. As mentioned in our weekly report, this was the last ray of hope post the recent sell-off as there was confluence of supports around this level. This previous breakout zone around 11100 coincided with the 50 days moving average and 200 SMA on the hourly chart. The market participants took this as an opportunity which resulted in a broad based buying. Also, many of the index heavyweights participated in today's move which is certainly a positive sign. Today's low of 11090 now becomes a support base as a higher bottom can be clearly seen on the chart. Going ahead, we expect the index to continue the momentum and till this support is intact, traders should look for buying opportunities for good returns in short to medium term. On the higher side, 11400 would be initial resistance to watch out and a breakout above the same would then provide a confirmation of resumption of the uptrend and the index could then approach 11550-11600 range very soon."