Indian Market Rebounds from Lower Levels as Strong Buying Emerges
Markets witnessed strong buying support with BSE Sensex gaining ground from lower levels. The markets have been drifting slowly over the last few sessions but today's rally can be seen as a renewed buying interest in select stocks.
Stock market review from Epic Research follows....
Nifty rebounded from lower levels as Buying on dips was seen in the broader market with Banks, Financials, PSUs and metals leading. This was a classic reversal set up as Nifty retraced back from very strong supports which were previously the swing highs in the zone of 11200 - 11100. These were important resistances during the August expiry and a retest of the same and buying coming in at those levels also improved the confidence; that we do have some buyers who missed the initial run are coming at these lower levels.
Secondly, Nifty was seen dipping below 20 days MA but a positive cross is seen in 20 and 50 days MA and recovery were seen exactly from 50 MA which is placed at 11087. So in the short term, these two MAs will play an important role to provide support.
Derivatives data also pointed to short covering at strikes of 11300 - 11400 while long build-up is seen at 11200 - 11300. This indicates that we may sustain the 11200 - 11300 in the coming days. On the upside, resistance is now seen at 11480 - 11520.