Nifty clocked a gain of 0.43% on the back of 925 advancing stocks against 542 declining stocks today. The rally was broad-based in terms of sectoral participation with only the IT and FMCG sectors closing in the red for the day.
Nifty Intermediate Term
I was expecting that Nifty will slowly slide down, that didn’t happen and we had a close to 200 points rally in the last two days. The Nifty is currently back to the 11850 resistance level and it seems compared to the 11850 to 12050 range from mid-May to mid-June we have now shifted to 11650 to 11850 range.
Broken support normally turns into resistance and 11850 can act like one. The union budget in July will provide some definite trigger for the market to break out of these narrow range days. On an overall week on week OR month on month basis the view remains negative notwithstanding the last two days Nifty rally.
Nifty Short Term
The short term bearishness got negated as the Nifty moved above the upper end of the falling channel as we have explained two days back. The 11850 zone will serve as resistance.