A breakout above 11,500 marks where descending trend line on lower time frame is placed, will give confirmation of retracement complete and original uptrend begin.
Nifty, after rallying for nearly 1,000 points in just two trading sessions post-corporate tax cut announcement, now has corrected by some 450 points denting the market sentiment. Technically, after making a high of 66 in the last week, the RSI momentum oscillator is retracing towards the breakout point of 50 which should be considered as a pullback buy setup (PBB) and it can be used as a bargain-hunting opportunity to go long.
On the lower side, confluence of supports are in a zone of 11,000-11,150 levels. These supports mainly consists of a line of parity placed at 11,150, 61.8% Fibonacci retracement levels of current rise standing at 11,060 and strong psychological levels 11,000. One should add longs as far as Nifty is trading above this crucial demand zone.
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