A morning walk down Dalal Street: Nifty must close above 11,080 for move towards life time high of 11,171

Bulls took control of D-Street and pushed Nifty above its crucial level of 11,000 on Tuesday. Fall in crude oil price, better than expected earnings from Federal Bank & Ashok Leyland, as well as strong currency helped the index to climb the wall of worries.

The S&P BSE Midcap index which plunged over 2 percent on Monday recouped most of its losses and closed higher by 2.1 percent, a welcome sign for the bulls. 

The pullback was largely a renewed buying based on a few technical factors that are favouring the bull.

The lagging Indicator MACD has retested the Zero line and is positive since July Series indicating the bullish trend in the medium term. 

The next resistance is placed at 11,170 which is a previous all-time high.

Analysts maintain a buy on dips strategy with the target of 11,250 – 11,300 on the upside while a recent swing low of 10,900 can be kept as a stop loss.