Nifty closed above 12350 and formed a bullish candle on daily chart as closing was higher than opening value.
Bulls pushed the index higher in the second half of session after consolidating for the most part of the session. Market breadth was strong as participation in mid & small caps was visible and held it steady throughout. FMCG & Metal index were leading the index. Nifty is inching towards our target zone of 12400/12450. We continue to have positive view on the markets and especially mid & smallcap sectors along with metal sector. Traders and investors should continue to maintain long positions and buy on dips.
Nifty is in important supply zone of 12350/12400 but it is not showing any signs of weakness where if it manages to take out this resistance zone then we can expect a rally towards 12500/12650 levels in coming days while in the downside 12285 will act as an immediate support level; below this 20DMA of 12178 will be next important support.
Traders to better off by giving a miss to the limited gains on the upsides, whereas weakness can be expected on a strong close below 12285.
Sector wise :- FMCG index gained over 1 percent followed by metal, pharma, auto and IT.