Going ahead, 13000 is the key psychological hurdle with the potential to stretch to 13350, which is the short-term target. Near term support zone, on the other hand, shifts higher to 12800-12820.
The Nifty50 closed in the green for the third consecutive day in a row on Wednesday despite some bit of profit-taking in the morning session. The index managed to recoup losses and closed above 12900 levels for the first time in history.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 227 points to 44,180 while the Nifty50 gained 64 points to close at 12,938.
Sectorally, the action was seen in capital goods, auto, realty, banks, and financial stocks while profit-taking was visible in FMCG, IT, telecom, healthcare, and consumer durable stocks.
Experts advise investors to stay with long positions and avoid going contra as there are no sell signals. The near term support is seen around 12800 while crucial resistance could be placed around 13000 levels.
“The Nifty had a muted first half on November 18. On the downside, however, a 20-hour moving average induced buying interest. As a result, the index scaled higher in the second half of the session & went on to cross Tuesday's high of 12934,” Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.
“The overall structure shows that the bulls are maintaining the dominant position & that is leading to an extension on the upside. Going ahead, 13000 is the key psychological hurdle with the potential to stretch to 13350, which is the short-term target. Near term support zone, on the other hand, shifts higher to 12800-12820,” he said.
Here is what experts think that investors should do on November 19:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market once again closed at the highest point of the day at 12935 under the leadership of Auto and Financials. The next level to watch out for is 13000 for Nifty and on the dismissal of it, we could see the levels of 13250 with a minor resistance at 13140.
On the downside, 12780 would be a major support. The momentum in the market is very high and that would keep pushing the markets higher until the Nifty is not closing below the level of 12780.
The Bank Nifty climbed 5000 points in 3 weeks and is now 10 percent away from reaching all-time highest levels while looking at the strength in PSU and private banks it won't be that difficult for it. However, one should maintain a stock-specific position.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
The Nifty continues to trade with a positive bias scaling new highs. We strongly believe the medium-term trend is positive and any meaningful correction is an opportunity to buy.
We currently are in a “Frothy” zone from the short term perspective and hence need to be selective. Since the recent rally has been vertical and quick not all sectors provide comfortable entry points.
We believe currently, Auto, Gas related stocks, and select PSU Banking can be looking into. Metals and Private banking can be accumulated only on corrections.
Ashis Biswas, CapitalVia Global Research Limited - Investment Advisor
The markets opened with a flat note and after a knee-jerk movement down continued to trade in the green rest of the day. We view 12930-12950 as a potential supply zone and the market is currently trading near to it.
While technical evidence from momentum indicators like RSI, MACD is not supporting the rally and cyclically market is about to enter into a corrective phase, the investor should use the rally to scale down their position gradually. On the downside, 12770-12790 is likely to act as a support zone.
Abhishek Chinchalkar, CMT at FYERS
The Nifty advanced to an all-time high today, as strength amongst the banking and auto stocks more than offset weakness amongst the IT and FMCG space. The index is now less than a percent away from hitting the psychological 13000 barriers.
With market internals showing no signs of weakening, the rally seems poised to continue towards 13390-13530 levels in the days ahead.
On the downside, support for Nifty50 lies at 12770. As long as that holds, the near-term trend remains skewed to the upside.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.