Nifty closed tad above 12200 level and formed a small bullish candle on the daily chart. Nifty witnessed closing above sacrosanct hurdle of 12170 level which may lead a move towards 12430 level in the coming days where 12300 will be intermediate resistance level while 50DMA of 12062 will act as immediate support in the downside.
Bulls appear to be defying bearish technical parameters for the time being as Nifty managed to get past its initial hurdle placed around 12160 with a small bullish candle. However, in today's session, the advance decline ratio completely skewed in favour of bears as approximately 7 stocks rallied for every 10 stocks declining. Nifty continues to remain vulnerable to a sell off despite bulls succeeding in putting up a brave posture.
As long as Nifty sustains above 12144 level, an initial target of 12272 can be expected and beyond that 12350/12430 can't be ruled out in this upward swing which still looks like an upward corrective reaction to the entire fall from the highs of 12430 to 11614.
On the day of weekly expiry of options contracts, we are anticipating Nifty to trade between the range of 12170 and 12272. A lower opening nearer to 12170 would be buying opportunity in the market. On the other side, a higher opening to 12250/12272 should be selling opportunity for intraday traders.
Trading range for Nifty to 11990 to 12430 level.
Sector Wise : Except pharma and PSU banks, other indices ended higher. Midcap and Smallcap indices ended marginally lower.