Nifty needs a decisive break above 11000 points
The markets rallied sharply on Friday after taking a breather in the previous session as the indices clocked their best gains of the week, but ended lower for the week. The gains came on the back of positive Asian markets amid easing US-China trade tensions. The Sensex gained 337 points or 0.92 per cent, while Nifty Index ended 98.3 points or 0.91 per cent higher at 10,946.2.
The broad market indices like the BSE Mid Cap and Small Cap indices gained less, thereby underperforming the Sensex/Nifty. The market breadth was positive on the BSE/NSE.
According to technical analysts, on hourly charts the index has closed inside bullish cloud which implies if the index holds 10900 it can inch toward 11050 levels.
"Technically, with the Nifty rallying sharply and taking out its recent highs, the bulls do seem to have an upper hand for the short term at least. Further upsides are likely in the coming week once the immediate resistance of 11043 is taken out. Crucial supports to watch for resumption of weakness are at 10816," Deepak Jasani, Head Retail Research, HDFC Securities said.