Tuesday 31 July 2018



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The Nifty had formed an Inside Bar on the weekly chart in the penultimate week. Last week, the pattern broke out on the upside, leading to significant upside.

On the way up, the benchmark index has crossed its record high of 11,171 and entered into uncharted territory.


The broader market indices, though significantly below their respective record highs, have witnessed a sharp recovery throughout last week and formed large bullish candles on the weekly chart.In case of the Nifty, the swing low of 10,925 now becomes a major support. From a near term perspective, the recent gap area on the daily chart - 11,210–11,185 - should act as a key support zone. The momentum indicators on various timeframes are in line with the rally.

On the higher side, we are targeting 11,450 for the short term with a potential to stretch higher over the medium term.

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