Hot Stocks: Technical indicators show signs of bullishness; Strong support at 11,700-11,800
Episode 1912, Nov 19, 2019, 02:00 AM
Nifty has been trading in a narrow range of 200 points since the beginning of the November series.
However, the indicators and oscillators like MACD and DMI are trading in the bullish territory on the weekly charts.
The primary trend of Nifty is bullish as the index is trading above its 50, 100 and 200 DMAs. Higher tops and higher bottoms are well intact. So, technical indicators are suggesting that the positional trend of the market is bullish.
On October 29, Nifty surpassed the crucial resistance of 11,700, which resulted in a bullish “cup and handle” formation on the daily charts.
The earlier resistance of 11,700 is expected to interchange its role as support, going forward.
In the derivatives, we see put writing at 11,800-11,700 strike prices, indicating Nifty is likely to find strong support in the range of 11,700-11,800. Unless Nifty closes below it, the trend would be considered bullish for the markets from the derivative side also.