Nifty Rebounds From the 11,300 -11,500 support band

The previous week was a volatile one, as the markets oscillated in tandem with incoming news flows about the U.S Elections.

As anticipated, the NIFTY found strong support in the 11,300-11500 band, and made an immediate and powerful rebound as soon as it entered this zone. This corroborates the viewpoint that we are in a buy on dips market and that short positions are fraught with risk.

With a breakout taking place above the upper BB mark on the weekly charts, we could in fact see the index moving up even higher before rationality and profit booking kick in.

Mutual Fund investors who entered during the COVID correction would be making a smart move by booking at least partial profits at these levels, as this powerful upward momentum cannot possibly last forever.

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