A morning walk down Dalal Street| Traders should continue to ride the upmove as risk reward ratio looks favourable

A historic day for Indian markets. The S&P BSE Sensex rallied over 400 points while Nifty50 climbed 11,700 for the first time on Monday thanks to positive global cues.

Banks led the rally from the front, followed by metals as well as IT stocks. 

On the lower side, the index could find support in the range of 11,400-11,385. In case of major up-move, Nifty 50 index will face hurdles at 11,770 and then at 11,900 levels, respectively.

There is no major open interest (OI) build-up in calls and puts options as we are scaling a new high every alternate day over the past two weeks. 

Investors can look to initiate long in auto, retail focused private banks and high quality mid-cap stocks for reasonable upside, as the risk reward looks favourable at current level, experts recommend.

Traders should continue to ride the up-move with a “trailing stop loss” placed at 11,595-level.