3057: Hot Stocks | Tata Steel, Motherson Sumi, Tata Consumer can give up to 25% return in short-term
Nifty has been steadily moving higher for the last couple of weeks, and in the process, it broke above and sustained the earlier all-time high of 12,430 with conviction.
On the hourly scale, the index broke above the 5-day long consolidation and moved above the 13,000 level to test a new life-time high of 13,079.
A simple bar chart analysis shows that the index is forming a higher high higher low pattern, indicating it is in a bullish mode.
Any corrections may be bought into (buy on dips).
The immediate resistance is placed at 13,450 which also happens to be the level where we can see the highest call writing for the December series.
The extrapolated moves may even take Nifty to the next level of 13,769 which is 127.2 percent retracement of earlier fall from 12,430 to 7,511.
We expect the index to remain bullish and continue to move higher as long as it remains above the 12,742 level.
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