According to analysts, for next few days 10850 would be the support level and 11150 would act as resistance.
The market ended higher with the Sensex rising 163.68 points or 0.44 per cent to close at 37,145.45. The Nifty rose 56.85 points or 0.52 per cent to end at 11,003.05. The broader market was buoyant with BSE Mid-Cap Index gaining 0.97 per cent and the Small-Cap Index gaining 0.92 per cent. The market breadth was strong with 1605 shares gained and 933 shares fell on BSE.
The market will remain shut today, Sept. 10, on account of Muharram. “Confidence of domestic investors or mutual funds have helped the market to close higher. Total net equity inflows increased 12.30 per cent in August 2019 which has triggered buying in broader market, said Shrikant S. Chouhan, Senior VP-Equity Techn-ical Research-Kotak Securities.
According to analysts, for next few days 10850 would be the support level and 11150 would act as resistance. Above 11150, Nifty would enter into a medium-term uptrend. “Technically, Nifty formed a Bullish Candle on daily scale as sustained buying interest was seen for most part of the session. It is forming higher highs—higher lows from past three trading sessions and supports are gradually shifting higher. Now it has to continue to hold above 10950 zones to extend its bounce towards 11,111 then 11,141 mark while on the downside support are seen at 10,900- 10,850 levels,” said Siddhartha Khemka, Head-Retail Research, MOFSL.
“The Nifty is expected to move towards the crucial resistance zone of 11,120-150 levels (as per the concept of change in polarity) in the next few sessions, before showing consolidation or minor downward correction from the highs. A decisive move above 11,150 levels could have a sharp positive impact on the market, said Nagaraj Shetti, Technical Resear-ch Analyst, HDFC Securities.
In the absence of any major event, domestic economic data and global cues would dictate the market trend. Traders should prefer private banks, auto and infra counters for long trades.
"Global uncertainties like Brexit & US-China talks will be watched carefully by the market. While domestically, data like CPI, IIP, Auto production & sales and FDI/ FII inflows (RBI) during the week will be assessed to understand whether the worst for the economy is over or weakness will continue in the short-term,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.