The Nifty50 created history yet again on Friday as the index surpassed its previous record high of 10,178 and hit a fresh all-time high of 10,191.90. The index made a bullish candle on the daily charts for second consecutive day in a row.
The index, which now trades above its crucial short-term moving averages, is all set to claim new highs towards 1o,200-10,400 in the upcoming sessions. Traders should remain long with a stop below 9,977 levels.
The early Diwali cheer and strong macroeconomic data helped the index to surpass its crucial resistance level of 10,178 to hit a fresh record high.
“The markets rallied further and made a new record high today, thanks to encouraging macroeconomic data and supportive global cues. Among the local factors, robust industrial growth data and ease in retail inflation were the major triggers,” Jayant Manglik, President, Retail Distribution, Religare Securities told Moneycontrol.
“Besides, the better than expected results from the IT major, TCS added to positivity. In between, indications were favorable from the global indices,” he said.
The Nifty50 opened at 10,123.70 and slipped marginally to hit a low of 10,120.10. But, then bulls took charge and pushed the index beyond its previous high to hit a fresh record high of 10,191.90. The index closed at a fresh closing high of 10,167.45, up 71 points.
“The bulls continued their saga of registering historic highs as Nifty50 opened with a gap up and went on to build solid gains only to witness new highs once again with a decent bull candle,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“However, this high was once again greeted with a lot of skepticism as advanced decline ratio was skewed in favour of bears. Interestingly, this entire corrective move from the highs of August appears to have chalked out in a well-defined channel and a breakout above the said channel should act as a shot in the arm for the bulls as it will open up new targets placed around 10650,” he said.
However, on long-term charts, Nifty50 has critical resistance around 10,400 levels. Mohammad further added that if the next leg of up move materialises then Nifty50 will initially head towards 10400 kinds of levels and traders are advised to by the dip or a breakout above 10200 with a stop below 9977 levels.
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!
