A morning walk down Dalal Street | Buy on dips as long as Nifty trades above 11,340
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Fresh record highs for both Sensex and Nifty. The index closed above its crucial resistance level of 11550 on Monday and if the momentum continues in Tuesday’s session there is a higher probability that the index might inch towards 11600.
This is the 23rd time the Nifty has closed at a new high this calendar year. 13 of the 23 highs came in January and the rest 10 after that.
Positive global cues, recovery in rupee, fall in crude oil prices and in-line Q1 results season provided much-needed comfort to the bulls to continue their buying spree.
The rupee also strengthened about 40 paise and the yield on the 10-year Treasuries fell by 3 basis points.
Just concluded earnings season has confirmed that Indian corporate earnings have become robust, even though hiccups remain from PSU banks, suggest experts.
On the technical front, initial target on the upside is at 11640 with the potential to stretch till 11840.
On the other hand, the gap area of 11500-11486 shall act as an immediate support zone with major support at 11340 which should also be your stop loss.