Home / Markets / Stock Markets /  In 'good news for bulls', Nifty finally takes out 11,350. What analysts say

Indian markets ended firmly higher today, led by gains in banking and metal stocks. The blue-chip NSE Nifty 50 index closed up 1.23% at 11,385.35, highest since February 27. The S&P BSE Sensex closed 477 points higher at 38,858.32, highest since March 3.

"The Nifty has done extremely well for itself as it has managed to close above the 11350 marks. This is good news for the bulls. We should now endeavor 11500-11700 as the next two levels for the market to achieve. A stop can be placed below 11200 as that is the new support for the index," said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.

Among the Sensex stocks, RIL rose 1.3% and HDFC Bank 2%. The Nifty realty index, which tracks real estate firms, advanced the most and closed 4.04% higher. The Nifty pharma index inched down 0.12% and was the only sub sector to finish in negative territory on Tuesday.

The Nifty private bank index closed up 2.2% and the Nifty metal index finished 1.76% higher, helped by a 6.01% rise in miner MOIL Ltd .

"Nifty has closed at a recent high and hence the mood has turned up for the near term. As seen recently, action in individual stocks is far higher than that reflected by the index. However as the Nifty has broken the recent high, some action can now return to largecaps too," said Deepak Jasani, Head Retail Research, HDFC Securities.

Here is what analysts say on today's market action:

Ruchit Jain, senior analyst for technical and derivatives, Angel Broking

"Today it resumed the positive momentum and surpassed its swing high of 11370. Such breakouts usually leads to a continuation of the trend and the overall market breadth too is in favor of the bulls. The follow-up move in the coming session will be important as if the momentum continues, then it will lead the index towards 11465 followed by 11625. These are the projections done by the reciprocal retracements of the recent corrective move. On the flipside, 11250 will now be seen as an important support."

Vishal Wagh, Research Head, Bonanza Portfolio

"The Nifty started the day on a flattish note. But managed to bounce back sharply and crossed a recent high of 11366 and successfully closed above it. Going forward, major support will be seen around 11200 and resistance will be 11460."

Ajit Mishra, VP - Research, Religare Broking Ltd

"It’s almost a month now that the benchmark has been hovering in a range while holding firmly around the highs. Indications are in the favour of breakout but we seriously doubt that it could match the momentum which we were seeing earlier. Having said that, the scenario might improve if we see the banking pack gaining some traction after the prolong underperformance. Markets would continue to take cues from upbeat global markets, in the absence of any major event. Besides, talks between US-China and further development on AGR dues would also be in focus."

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

"The short term trend of Nifty continues to be positive. Nifty could encounter another overhead resistance around 11500-11600 levels in the next few sessions and there is a possibility of another round of minor profit booking from the highs by the week end or by next week. Immediate support is now shifted to 11350-11300." (With Reuters Inputs)

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