Nifty has given week's long consolidation pattern breakout on the daily timeframe which indicates a surge in optimism. The rise in price was backed by surge in volume indicating broader participation. The rally on the closing day of the week led to close above 200 EMA on the daily chart. An upside breakout after a prolonged consolidation is likely to provide more tailwind to the market. On the higher end, immediate crucial resistance is placed at 11400 above, and the index is expected to extend gain towards 11550-11600. On the lower end, support exists at 11000.
Bank Nifty has moved above previous swing high on the daily chart. The rise in price was backed by decent increase in volume. Also, after the recent rally, the bank index has moved above 38.20% Fibonacci retracement level, which is an early sign of bullish reversal. The trend is likely to remain bullish as long as Bank Nifty is closing above 28500 on the higher end; it may move towards 29800 and higher over the short term.