Investors resort to profit-booking

Nifty opened with a sharp gap-up of nearly 190 points around the 26050 zone amid optimism over the India-US trade deal and traded sideways in the first half of the session within a narrow 50-point range.

- Motilal Oswal Team

However, in the second half, the index witnessed profit booking of more than 200 points from the day's high of 26104, wiping out most of its early gains. After a strong rally over the past few sessions, the index is now facing some pressure near its all-time high of 26277. On the daily chart, Nifty formed a bearish candle, though the sequence of higher highs continues for the sixth consecutive session. A healthy dip from current levels should be viewed as a buying opportunity within the broader uptrend. Now it has to hold above 25800 zones for an up move towards 26000 then 26277 zones while supports have shifted higher to 25800 then 25700 zones.