Nifty managed to cross its upper trading band of 11,700 level as strong momentum in major heavyweights like Reliance Industries and TCS helped the benchmark index to breach its lifetime high level during the week.
However, on Thursday, Nifty Futures formed a bearish Belt hold candlestick pattern on the Daily chart, indicating that the current momentum can reverse if the index manages to close below 11,738 level in the next trading session.
On the other hand, Bank Nifty has also formed a bearish Engulfing candlestick pattern on the daily chart, indicating a negative bias going into the expiry week.
Immediate support for the index is placed at 30000 and resistance at 30500. The Nifty Auto index is gaining traction and has also broken out from a falling channel pattern.
We expect the auto stocks to outperform in the coming weeks.
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