Currently the Nifty trades with a resistance of 11740 and if it cross that level then it may trigger a long trade bullish trade.
Markets gained for the third consecutive session with both Sensex and Nifty ending in the positive territory on Wednesday.
The Sensex gained 84 points to close at 39215, while the Nifty closed 24.9 points or 0.21 per cent higher at 11,687.5.
The broad market indices like the BSE Mid-Cap and Small-Cap indices ended lower, underperforming the frontline indices and the market breadth was negative on both exchanges.
Financials (including Banks) and Aviation were back in favour. Sectorally, the top gainers were the BSE IT, FMCG and Bankex, while the top losers were Auto, Oil and Gas, Telecom and Power indices.
"The sideways range movement continued in the market and the Nifty closed slightly higher. A small body positive candle was formed on Wednesday with minor upper and lower shadow. Technically, this pattern indicates a choppy trend with positive bias. The key overhead resistance of 11,650 (resistance as per the concept of change in polarity) was broken on the upside, but still there is no convincing upside breakout indication as of now," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Mustafa Nadeem, CEO, Epic Research said, "The Nifty edged up for the second consecutive day and touched the mark of 11700 and was able to close above its 10 Day SMA. This is a very good indication but the overall breadth still looks weak as the overall cues are still mixed. The global cues have been negative as US markets are worried over lower interest rates while it may also hamper the earnings of banking space."
"Nifty closed in the in the positive territory in the last trading session and with that it has closed into positive territory for the third consecutive day. The Index continues to form higher tops and higher bottoms on the daily charts which is quite positive. Now, on the lower side, there is a good support at 11600 levels and till those levels are held it is expected to bounce till 11750 levels," said Jay Thakkar, CMT Head Technical and Derivatives Research - AVP Equity Research, Anand Rathi Shares and Stock Brokers.
Currently the Nifty trades with a resistance of 11740 and if it cross that level then it may trigger a long trade bullish trade. "We believe the Index is in a structural uptrend with meaningful dips providing a good buying opportunity for minimum target of 12100 on the Index. Private banks and Cement stocks trade with a positive bias while Metal and Auto stocks trade near critical support levels," said Sahaj Agrawal, Head of Derivatives, Kotak Securities.