Hot Stocks: Short term hurdle for Nifty placed at 12,000-12,050 zone
Episode 1886, Nov 12, 2019, 01:57 PM
Last week, the Nifty ended with “Doji” candlestick pattern on the weekly charts. This development could act as a speed breaker in the Nifty for the time being.
The Nifty50 closed below its 5-Days EMA for the first time after 10th Oct 2019, and the RSI indicator on the daily charts has just exited from the overbought zone. This development also indicates the chances of extension of the correction which started on Friday, last week.
The Nifty50 formed a top at 12,034 last week and same would remain a crucial resistance in the short term. Unless this level is taken out, the short-term trend would be a running correction.
However, we strongly believe that the Positional technical setup of Nifty is bullish and the market would find support at lower levels.
According to estimates, 11700 is strong support and the range of 11700-11750 should be utilized to create fresh long positions.
However, we should also keep an eye on the immediate support placed at 11,850 in the Nifty. If 11,850 is breached then we can see the Nifty to extend the correction towards 11,700-11,750.