"BUY RELIANCE 1620 CALL @ 15 TGT 20/25"
Bulls continued their
record-breaking run. The Nifty surpassed the 12250-mark for the first time
after reports that China has exempted tariff on US products. The Sensex gained
115 points to close at 41673 after hitting a record high of 41685. The Nifty was
up 38 points to close at 12259. The index hit intraday high of 12261. The Nifty
found hit a new peak and closed higher for the third consecutive session on 19
December 2019, driven by buying in select majors such as Reliance Industries,
TCS, and Bharti Airtel. The index remained in a intraday range of 77 points
before ending at record closing high again. After opening flat, the Nifty saw
some consolidation but gained strength in late morning deals and extended the
rally as the day progressed. The index hit an intraday record high of 12268 in
the late trade and closed 38 points higher at 12259.
It formed a small
bullish candle on daily charts as the closing rate was higher than the opening
tick. One interesting thing was a buy signal triggered by MACD indicator, or
Moving Average Convergence/Divergence indicator, on the daily charts. The
technical-chart patterns indicate that there could be a consolidation in the
coming sessions. Today's vertical move facilitated a buy signal on daily MACD
chart while pushing the index for a close above upper Bollinger Band. Usually
this kind of behavior on indicators, accompanied with over-bought readings on
several other technical parameters on lower time-frame charts, is hinting at
the need for some corrective and consolidation phase before taking the index
further into uncharted territories. The resistance is visible in the 12275–12300
zone, where upsides can be capped. As risk reward ratios from the current
levels may not favors a long-side trade, short-term traders to remain neutral
on the buy side and wait for some correction before going long. Shorting can be
considered on a close below 12200 for a target of 12125.
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Resistance: 12275, 12300, 12325
Support: 12200, 12150, 12100
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