Nifty tested the support range of 10,880 at the start of the week and witnessed a sharp pullback from lower levels with index heavyweights leading the upmove.
Nifty Midcap Smallcap indices outperformed frontliners, gaining 2.8 percent and 3.9 percent, respectively, for the week while Nifty has gained 1.1 percent.
We maintain our positive stance as the lower band of averages has been tested. Midcap and smallcap indices will continue to outperform as they have crossed the long term 200-day averages with sharp positive price performance.
The trend reversal continues to be placed at 10,850 levels, being the 200-day average and the current week’s low.
Bank Nifty should witness an upward breakout as there are multiple higher bottoms in the range of 21,100-21,300 levels and the event of the credit policy is behind.
Read more at: https://www.moneycontrol.com