If Nifty again slide below 13,626, we may see some corrective move in the concluding week of the current calendar year
The recent recovery seems more like a dead cat bounce which could last for some more time but it would be advisable to remain cautious at higher levels. Nifty has got strong resistance at 13,600
13,650 is the immediate support which, if breached, could result in some profit booking and drag the index towards 13,500-13,470
Nifty50 has been finding support at its 8-day EMA, which is currently placed at 13,438
Traders should try to create a long position keeping a close eye on 13,400
With a broader view, 14,000 and beyond levels are very much possible, but for the time being 13,500 - 13,600 are the extreme levels as per few key Fibonacci ratios
As far as support is concerned, 13,145 is a crucial level to watch out for
We can witness short-covering move along with addition of fresh position only if Nifty breaches 13.200
Midcaps are likely to continue their outperformance for the coming days
Although the overall trend has been strongly up, traders should still avoid aggressive bets
Better-than-expected Q2 GDP data numbers might help index to move in the positive territory
Nifty50 index also remains above the 20-day SMA and has now closed at a new life time high after clearing the recent highs of 12,963
We can witness a short-covering move along with the addition of a fresh position only if Nifty breaches 13,000.
Last week, we had witnessed a 'Bullish Flag' breakout around 12,050 and since then markets never looked back.
At current levels, midcap and smallcap stocks look more attractive than largecaps
For Nifty, 12,430.50 is the first level to watch, and post that, the theoretical target of the 'Flag' pattern is around 12,700
We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,300
Avenue Supermarts (DMart) is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if it moves above 2,300
Trading longs should have stoploss at 11,700 in Nifty
As per weekly option data, huge call writing on higher strikes ranging from 11,700 to 12,000 is witnessed which shows Nifty would face resistance in the zone of 11,800