Nifty outperformed on 16 Apr which was marked as a fresh high ! Check Out Overview for Upcoming Days !!
Nifty outperformed on 16 Apr which was marked as a fresh high of 11847 till yet, where the opening was at 11758 and market closing was also positive at 11824. It was a good breakout for the long consolidation range of 11630 to 11775, It was becoming tough to work in such a range bound market from last 12 working days. Hence this break to the index prices can be taken as a fresh breath for newer levels of 11920 and 12000.
We expect the prices to take an up move after this long range bound consolidation. As there was a gap-up opening marked on chart at 29th March, which is still not filled, so a continuation gap pattern can be taken further for 11920 handle which can further lead prices to 12000. Focusing not just the upside of index we are more careful that the brick of 11620 should not get broken.
This upside was mostly support by nifty stocks, so talking for sector or stocks we should focus on Auto and Metal Sector. Stocks of both Auto and Metal sector should be on radar to make some long position for coming days.
SUPPORT AND RESISTANCE:
Nifty formed a bottom on some odd levels of 11570 in previous week, so the same handle of 11570 can be taken as a major support, where an initial support falls at 11650, if we saw any fall in index prices. At part of resistance, as index hit a fresh high so we can expect prices to head for 12000 in coming days.
STRATEGY (MY VIEW):
Looking on the chart patterns, we believe that buying on dips would be a good strategy in coming days. Buying in range of 11750 to 11820 can be a good entry bracket, where one can see a profit booking in 11930 to 12000.