After an extended weekend, Market opened today with softness and remained range-bound for most of the day.We witnessed a volatile session, at the end of which Nifty closed 23 points lower at 11724. In the morning Nifty briefly violated 11700 and at another point of time Nifty was well poised for taking out 11800 but that did not happen either.
With two consecutive lower closes and especially in absence of new highs beyond 11800, the short term uptrend is slowly exhausting but it is not confirmed as yet. The intermediate uptrend will actually reverse below 11550 as there are multiple supports. Unless sellers take out the entire demand in this region, the present uptrend deserves benefit of doubt.
As far as stocks are concerned, our old recommendation Reliance Inds continues to outperform & it closed at a new life high today. We believe this outperformance is likely to be extended and there is a support at 1375 for Reliance. Another banking major HDFC Bank also broke out of its one month consolidation range and closed at life high (CMP: 2356). It has supports at 2325 & 2270 regions.
