Markets may re-test life highs next month. Check out why

Check out the trading strategies in Nifty index, Bank Nifty, Tata Motors and Midcap segment with Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services

SmartInvestor: Markets have rebounded today significantly post Yellen's remarks. The Nifty is hovering around 6,100 levels. What is your advice to traders on the benchmark index for the next week?

Ranak Merchant: The correction from last week's double top near 6344 found support in the fibonacci restracement support zone of 5980-5947 levels. For the coming week the crucial level to be watched on closing basis would be 6070. Though current around the same level, a sustenance of 6070 would be imperative for an upmove to resume.

Ranak Merchant: Also watch currency movements, (rupee making a 2 month low of 64 and retracing back to 63) for further cues. Incase the bond yields and rupee stabilises we could see a re-test of life highs by next month.

SmartInvestor: What is your take on the Bank Nifty? Your top picks from this segment?

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