Indian Indices witnessed yet another strong session by Bulls. Nifty started the day on a cheerful note at 10,853.20, up 48.20 points from its previous closing of 10,805.45. After a gap up opening, a strong follow through buying was seen through out the session and Nifty ended the day at 10,888.35, tad below the high of the day at 10,900.35. The Index ended the session with gains of 0.77%.
Bank Nifty also witnessed a similar set up. A strong Gap up opening at 26,915.45 versus previous day closing at 26,826.00 and a good follow through buying was seen during the day. The index ended near the highs of the day at 27,015.80 gaining a measurable 0.71%.
Today’s rally came as a continuation of the past 5 consecutive session up moves, where Nifty has gained almost 500 points and Bank Nifty has amassed a robust 1400 points!
Daily Charts of Nifty display a ‘Run away’ gap which signals at the continuation of the current trend. Nifty has closed near the highs of the day 10,900.35 which is also the crucial resistance for next leg of buying.
Hourly charts of Nifty display a V-shaped rally which has resistance at 10,900 (R1) and at 10,950 (R2). Any break above the mentioned level would trigger fresh demand and thereby a new rally. Intraday Traders shall wait for the R1 to be taken out before initiating fresh longs in the next session.However, if Nifty fails to break the immediate resistance and show some selling pressure, then fresh shorts may be initiated below Immediate Support of 10,844.
Bank Nifty on the other hand, is also displaying an uptrend on Daily charts. It is already surpassed the major hurdle placed at 10 and 20 EMA, in the said time frame. Fresh buy may be initiated in Bank Nifty above the immediate resistance of 27,052. However, if the Bank Index fails to gather momentum in Intraday above the said resistance, shorts may be initiated below the immediate support of 26,960.
Nifty Trading levels/Trade Date- 18/12/2018
Buy above 10,901 for targets of 10,920/10,940
Sell below 10,844 for targets of 10,824/10,808
Bank Nifty Trading levels/Trade Date- 18/12/2018
Buy above 27,052 for targets of 27,090/27,140
Sell below 26,960 for targets of 26,920/26,860
*All levels mentioned are of cash/ spot segment.