11000-mark remains a point of mkt control

Markets rose moderately on Wednesday on the back of gains in other Asian markets marking the third consecutive day of gains.

The Sensex closed 125 points higher to settle at 37271 while NSE Nifty gained 33 points to close above the 11000-mark.

The top gainers were Yes Bank, Tata Motors, Maruti Suzuki, Tata Steel and Vedanta. Among the sector indices Realty Index jumped 4 per cent, while PSU Bank and Auto ended 3 per cent higher.

"After showing an upside bounce in the last couple of sessions, the Nifty showed up move on Wednesday with range movement and closed the day on a slightly positive note. A small body of positive candle was formed with minor upper and lower shadow. Technically, this pattern indicates a range bound action at the highs. This pattern doesn't indicates any red-flag signal so far for bulls, but could be considered as a breather pattern," said Nagaraj Shetti — Technical & Derivative Analyst, HDFC Securities.

According to analysts, the Nifty witnessed a muted session with a relatively small range as it is seeing a lot of resistance in the area of 11050 — 11100. This has been one of the key resistance zones for the last few weeks which bulls haven't been able to take out.

"The derivatives data point to huge activity at 11K strikes on the puts front making it the point of control for the next trading session. The overall concentration indicates the range to be 11200 to 10800. We believe a close above 11100 should trigger a short-covering that can drive markets further higher. One should be cautious on the shorts side. A break above 11100 would likely be seen with an increase in volatility," said Mustafa Nadeem, CEO, Epic Research.

Technical View
"Index opened a day marginally higher and traded whole day in tight range of 100 points and closed at 10848 with minor gains of 3 points forming Doji candle pattern on daily chart suggesting indecision in the markets. Now Index has support near 10800-10745 zone holding above said levels can see some swift move towards 10900-10960 zone which are immediate resistance on higher side," said Rohit Singre, Senior Technical Analyst, LKP Securities.

Market View
"We believe global factors such as US-China trade war development, Brexit; etc. will provide direction to the markets. Also, ECB meet scheduled for Thursday and a likely rate cut by US Federal Reserve in its mid-Sept. meeting will have a bearing on the markets going forward," said Ajit Mishra, Vice President, Research, Religare Broking.