Nifty continued its northward journey for the eighth day on the trot where it gained 17 points yesterday to close at 11,931 to close at eight months high.

During the last eight sessions, Nifty has moved up by more than 700 points.

During the last week, Nifty broke out from the downward sloping trendline drawn by connecting the lower highs of 11,794 and 11,618 on the daily chart which suggests that the medium-term trend has turned bullish and Nifty could continue the bullish momentum in the near-term.

In the derivatives segment also, we saw a long build-up in Nifty and Bank Nifty futures last week.

The short-term trend has turned bullish as Nifty is trading above its 5 and 11-day simple moving averages that are currently placed at 11,800 and 11,620, respectively.

In the Nifty options segment, we have seen aggressive Put writing at 11,600-11,700 levels. The previous swing high of 11,618 will interchange its role as support from resistance.

The 11-day simple moving average is placed at 11,620 levels. There are multiple pieces of evidence that suggest that on the downside Nifty is likely to find strong support in the range of 11,600-11,700 levels and unless the benchmark index closes below 11,600, the bullish trend will remain intact.

Immediate resistance is seen around 12,100 level, followed by 12,246.

Our advice is to remain long in Nifty with the trailing stop loss of 11,600 levels. On the higher side, we may see levels of 12,200-12,300.