Hot Stocks: Current momentum could extend further towards 12,300-12,350 levels
Episode 1951, Nov 28, 2019, 02:00 AM
After forming three continuous Doji candlestick patterns on the weekly charts, the benchmark index has broken a resistance shield and gave a breakout above its previous swing high.
The Nifty50 continued to form another higher high formation on the daily chart, hence its major technical indicators remained positively poised above their averages.
On 27th November, benchmark index traded in a narrow range throughout the day but last hour buying forced the index to close at 12,100 level. Positive market breadth near an all-time high level shows positive enthusiasm among the traders.
On the derivative front as well, 12,100 strike Put holds maximum open interest addition of 13 lakh shares. In the recent rally, Call writers at 12,000 strikes were covering their short positions and creating fresh longs positions, which indicates that the bullish momentum is likely to continue.
The banking index has certainly outperformed the Nifty50 in the previous two trading sessions, which is majorly lead by the private sector banks.