Hot Stocks: Diwali cheer continues on D-Street! Nifty on track to hit record high
Episode 1844, Oct 31, 2019, 02:05 AM
The index is trading above its 20, 50, 100-Days exponential moving averages (EMA) on a daily interval which is positive for Indian bourses
The Indian benchmark index began the post-Diwali week on a strong note as the Nifty surpassed its horizontal trend line resistance placed at 11,700 level convincingly.
As mentioned last week, a break above 11,700 will open the gate for the index to hit 12,000 in the coming sessions and will also be the next resistance.
On October 29, strong buying was witnessed in the index, which forced bulls to overtake bears and close above the 11,800 mark.
Due to the recent breakout in Nifty, its key technical indicators once again turned in favour of bulls. Hence, our bullish view will remain intact. But a near-term consolidation cannot be ruled out before hitting a fresh high.
The index is trading above its 20, 50, 100-Days exponential moving averages (EMA) on the daily interval, which is positive for Indian bourses.
In case of any decline, the index will continue to find support around 11,700 -11,650 levels, which coincides with the horizontal trendline supports and will act as a line of polarity (resistance will act as support).
However, a stable move above 11,900 levels will invalidate prior bearish trend reversal formation and will strengthen the index to a fresh high.