After taking a breather, the market regained momentum and scaled a record high in the week ended November 25 on the back of positive global cues. Buying binge by foreign investors and a fall in crude oil also aided the rally.
The Nifty50 closed above 18,500 for the first time in history, rising more than a percent during the week and formed bullish engulfing pattern on the daily charts, indicating positive mood at Dalal Street. The index is now around 100 points away from its record high of 18,604 seen on October 19 last year, while the BSE Sensex and Bank Nifty crossed their previous record high levels.
On the weekly charts, there was a breakout of downward sloping resistance trend line adjoining October 18, 2021 and November 14, 2022. Even on a monthly scale, the index has seen a breakout of downward sloping resistance trend line adjoining October 1, 2021, and September 1, 2022. Also the index has been trading well above all key exponential moving averages.
Hence, 18,450-18,500 is expected to be a crucial area for further upside. If the said zone sustains, then new highs are possible in the coming days, with support at 18,300, followed by 18,000 levels, experts said, adding on the option side, 19,000 strike has attracted a lot of open interest, indicating the crucial resistance point.