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Nifty 50 Hits Fresh All-Time High.. Again

Nifty 50 News

Nifty 50 continues to hit new all-time highs for the fourth day in a row boosted by Wall Street and global markets as the risk appetite increases after phase one deal between China and U.S. Sensex index also hit all-time highs as Indian stocks fueled by speculation of a budget stimulus, lower corporate tax, and government plans to divest the public sector companies. Foreign institutional investors continue to buy equities as the data from stock exchange shows.

The low-interest-rate economic environment also helps stocks as  Reserve Bank of India (RBI) followed other major central banks as it cut the benchmark interest rates on October by 25 basis point to 5.1% at it’s the lowest level since 2010. In the December policy meeting kept rates unchanged disappointing analyst who expected an additional 25 basis points cut.

Read our Best Trading Ideas for 2020.

Nifty 50 in Unchartered Territory

Nifty 50 adds 5.90 points or 0.06% to 12,266.40 as bulls are in full control of the index. Technically the Nifty 50 index after the correction the first ten trading sessions of December that tested the support at 11,800 and rebounded. From that point started a new leg higher that drove the index to fresh record highs. The base now shifted from 11,800 to 12,000.

The first resistance for Nifty 50 stands at 12,293 today’s top, while a break above will target the 12,350 psychological mark.

On the contrary, Nifty 50 immediate support will be met at 12,252 today’s low while the 12,000 round figure would provide a strong demand zone. The 50-day moving average at 11,871 will be the next support if bears breach the 12,000 mark. More bids might emerge at the 11,800 support from November and early December.

The bullish outlook for Nifty 50 suggests buying the dips with trailing stops at 12,000 area.