The bulls remained in control of D-Street amid intraday volatility on December 7 and helped the index scale a new high of 13,366.65. The index formed a bullish candle on the daily charts.
The index opened with marginal gains and rose to 13,366.65. It witnessed mild profit-taking which saw it slip to 13,241 but the bulls quickly helped the index recoup losses and reclaim 13,300 levels.
The index finally closed with gains of 97 points, or 0.73 percent, at 13,355. The S&P BSE Sensex rallied 347 points to close at 45,426. The index hit a record high of 45,458.
Use dips to buy as the trend remains strong, say experts. Crucial support for the Nifty is placed at December 7's low of 13,241 and on the higher side, 13,500-13,550 might act as resistance.
Despite intraday volatility, the bulls emerged victorious at the end of the day, as Nifty50 netted a gain of almost 100 points before signing off the session with yet another high.
“As this liquidity gushed rally seems to have created the fear of missing the opportunity, which is evident from the behaviour of buying every intraday dip in the last couple of trading sessions, the only option left for the market participants, at this juncture, is to remain long by trailing their stop loss levels on closing basis,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“In that scenario, Nifty shall head higher towards its next logical targets of 13,550 levels. If the Nifty closes below 13,241, then some pause or weakness in the current upswing can be expected.”
Mohammad added that traders who want to participate in the upmove should buy by making the use of the dip, if any, in the first hour of the session, towards 13,300 with a stop below 13,240 and look for a target close to 13,500.
India VIX was marginally down by 0.03 percent at 18.02 levels. Low volatility suggests that the bulls are in control and any small decline could be bought.
On the options front, maximum Put OI is at 12,000 followed by 13,000 strikes, while maximum Call OI is at 13,000 followed by 13,500 strikes.
Marginal Call writing is seen at 13,500, then 13,700 strikes, while Put writing is seen at 13,300 then 13,000 strikes. “Options data suggests that an immediate trading range is placed in between 13200 to 13500 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited told Moneycontrol.
The Nifty formed a bullish candle on the daily scale and formed higher highs-higher lows from the sixth trading session, he said. "Now, it has to continue to hold above 13,200 to witness an up move towards 13,500 then 13750 levels, while on the downside, major support exists at 13000 zones,” he said.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
