Markets witnessed aggressive short covering once the Nifty surpassed 11,530-zone during the week. The index has also surpassed the previous week's Doji pattern top of 11,570 and also closed above the same.
However, the Nifty has formed another bearish Dragonfly Doji pattern on the daily chart indicating profit booking is likely in the coming days. If the momentum does extend and Nifty opens with a gap up in coming week then all-time high cannot be ruled out.
Bank Nifty, on the other hand, has closed at exactly on the crucial resistance of rising trendline on the larger time frame chart which is around the 30500-30550 zone. Fresh leg of the upswing is likely only if the mentioned resistance is broken on a closing basis. Immediate support on the downside is seen around the 30100 levels.
Nifty Midcap 100 index has broken out from a classic Flag pattern on the daily chart. The index has also surpassed and sustained above its long term 200-DEMA which was around the 17750 zones. Going forward, we expect the midcap stocks to play catch up to the heavyweights.
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