14th Dec ’23 - Markets break out yet again! Nifty50 ATH 🐂🐂🐂Nifty Today’s Analysis
Recap from yesterday: “We have the Nifty expiry tomorrow and as it stands the OTM premiums are pretty low indicating the option sellers are not expecting a big more tomorrow. In case we pick a direction tomorrow, the short sellers (PE or CE) will have to run for cover and that could spike the option premiums. I am going with a neutral stance for tomorrow also and wish to go bullish above 21037 and bearish below 20702.”
4mts chart link - click here.
Guess what happened today? The CE short-sellers ran for cover as the pre-open indicated a mega gap up. Rightly so, we opened 182pts higher after FED announced plans to cut rates thrice in 2024. US markets were overjoyed and its spillover effects fell on Indian markets as well. Since the opening was above my target of 21037, I had to choose the bullish direction.
You wont believe how hard NiftyIT rallied today, +3.5%. The main reason we had a retracement over the last 2 to 3 sessions was NiftyIT. And its reversal helped Nifty50 hit a new ATH of 21210.9 today.
63mts chart of NiftyIT - click here
See the chart of NiftyIT. Between 12th and 13th December we fell 3.25% ~ 1098pts. And from those lows, it rallied 4.89% ~ 1599pts including today’s gains of 1156pts. Not just IT, almost all the sectors were in green today except for maybe NiftyMedia.
63mts chart - click here
Nifty has shown it is stronger than thought by bouncing off the channel's upper boundary. For tomorrow, my stance is revised to bullish. Since we are at ATH, I do not have an upper target, but my support level will be 21037.
