The harmony in the ‘phase one’ of Sino-U.S. bilateral deal signed by both economies added fuel to the fire and index closed at 11,428.30 levels, with a gain of 0.77% or 87.15 points. Almost all indices closed in green except the tech savvy stocks that erased 0.45%. Market breadth was neutral as 861 stocks were advanced while 912 stocks closed in red.
S&P CNX Nifty has given a breakout of ‘Bullish Flag’ pattern on daily scale that signals for a continuation of bullish momentum after a consolidated move and possesses high reliability. On daily scale, the index is closed near the kissing distance of 89 days (High-Low) band. Potential resistances are placed at 11,705.69-11,995.12 levels respectively. RSI is closed at 56.95 levels showing no signs of divergence and oversold. Elder’s Force Index that compiles the deviations in closing prices and volumes is closed above one.
On Wednesday, Nifty50 futures is likely to remain in a range of 11,291.03 -11,590.77 levels as per the daily volatility of 1.31 levels. Breakout of ‘Bullish Flag’ pattern on daily scale, heavy additions to Put Writing at 11,400 and 11,300 levels respectively, turning of Elder’s Force Index above one levels are hinting that continuation of bullish momentum cannot be ruled out. A breach above 11,450 levels will activate buyers to an upside of 11,500 and 11,500 levels respectively.