Hot stocks: Stay put in markets as Nifty50 is headed towards 12,300
Episode 1861, Nov 05, 2019, 02:00 AM
Nifty50 has been rising for the last 7 sessions. Last week, the Nifty registered its second-highest weekly close. Metals, PSU Banks, IT, and Midcaps have started outperforming the Nifty.
The S&P BSE Sensex has already hit an all-time high recently, while Nifty is just 1.3 percent away from its all-time high of 12,103 registered on 3rd June 2019.
By crossing 11700, Nifty broke out from the bullish “Cup and Handle” pattern on the daily charts, which projects the target at 12,300 odd levels in the Nifty.
The Nifty50 has also been moving in the upward sloping channel on the weekly charts, and the upper band of which also projects the next resistance at 12,300 odd levels.
The earlier resistance of 11700 has now become a strong support for the Nifty and longs should be protected with the stop loss of the same.
The Nifty is now placed above all important moving average parameters, indicating bullish trend on all time frames.
From an accumulation phase, markets have entered the Participation phase and the overall breadth of the market is likely to improve further from here.
The Nifty Midcap Index has surpassed its 200-DMA with “Rounding Bottom” formation on the daily charts. We expect Midcaps to outperform the Nifty and Sensex in the month of November.