morning thoughts... 

Well the index spurted above the levels mentioned and is likely to remain up in the coming session and may target 17950-18000 on the nifty front where some profit booking and resistance may be seen, whereas bank nifty will target 38200 and remains strong

Technically as long as nifty stays above 17910 and bank nifty above 37600 will provide strength for the index and will seek upsides

As we had mentioned last week that maximum call writers are at 17900 and 18000 , so this levels will provide resistance to the markets, however once the zones of 18020-50 is crossed, a good spike will be witnessed again as we approach the results season and a financial event ahead

Strong supports exists for the nifty at 17500-600 levels and bank nifty at 37000 levels, as long as this levels are maintained the markets will seek upper levels, only on a breach of these levels one may look for shorts, untill then a buy on dips to the mentioned levels must be applied

Stock rotation will continue and one must search pockets of strength for trading along with strong rsi and breakouts

Sectors like chemicals, auto, textiles, capital goods will outperform the markets

Commodities remains subdued in base metals, energy and bullions

Stocks to watch

Nifty and bank nifty as mentioned above

Buy upl 800 ce

Buy greaves cotton, sutlej textiles

Buy abfrl 300 ce

Buy dlf, tata motors

Buy crude, gold mcx, sell silver mcx