Bullish Momentum Showing No Telling Signs Of Slowing Down
On the weekly charts, the index seems to be "walking the band" or hugging the upper channel, which means that retracements could be short-lived and be used as bullish trade setups.
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The NIFTY made another bullish close last week, soaring 119 points by the time the closing bell rang on Friday. The announcement of another bond sale by the central bank lifted financial stocks, while optimism about easing geopolitical tensions improved overall sentiment. Friday's rally was across the board, with small and mid-caps witnessing strong buying interest as well. The year seems all set to close on a bullish note for the bellwether index, which has already witnessed close to 13 per cent growth in CT 2019, amidst slumping corporate growth and stretched valuations.
Significant call writing was witnessed at the 12500 and 12700 strikes, and the former could be expected to act as a fairly strong resistance level in the near term.
On the daily charts, the stochastic oscillator made a bullish crossover in the overbought channel, further underscoring the powerful bullish undercurrent that exists today.
On the weekly charts, the index seems to be "walking the band" or hugging the upper channel, which means that retracements could be short-lived and be used as bullish trade setups. Quite against the odds, stumping the puritans and fundamental analysts, the bull market appears all set to continue. But then again, when having equity markets ever been rational in the short run?
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