Following the positive global markets, Nifty opened strong and tested our first target of 5782; thereafter it stared trading in a narrow range of 5800 to 5770. It made a high of 5803 in the intraday trade and finally ended at 5787 with a gain of 0.89%. The Advance Decline ratio was almost 4:1. We maintain our bullish view on Nifty with our next target of 5940. However, on the daily chart the stochastic oscillator is in the overbought zone thus some correction is possible but one should use such correction as a good buying opportunity. On the downside, now the200 DEMA will play as a strong support for immediate term, which is placed at 5588.
On Monday, the Bank Nifty tested our first target of 11417 and continued its uptrend. Yesterday it outperformed the broader markets and closed strong at 11765 with a gain of 1.58%. It is still looking strong thus we maintain our next target of 12495, which is the target of "Inverse H&S" pattern. On the downside, one can revise the stop-loss from 10591 to 11348.
The BSE Realty Index outperformed the broader markets and closed strong at 2315 with a gain of 3.14%. We maintain bullish view and our target of 2419, which is the target of "Inverse H&S" pattern. On the downside, now the support is at 2202 for immediate term.