Nifty in uncharted zone with no resistance

The Indian stock market is moving higher relentlessly, and bulls are using every dip as an opportunity to buy. Even though the global markets are negative to subdued, the Indian stock markets outperformed with the support of Banks and IT stocks. The Nifty moved almost 200 points from the day's low. Finally, it closed at 14,199.50 with a 66.60 points gain.

The Banknifty went up by 1.63 per cent and IT index advanced by 2.62 per cent. Metal and PSE indices were the laggards in today's market. The volatility index India VIX is up 2.15 per cent. The breadth is in favour of advances. Nifty opened with 58 points gap down and recovered over 165 points from the day's low. As a result, it formed another big bullish candle engulfed yesterday's body. It is once again mischief the short sellers at the high.

The recovery from Banks after four days of subduedness and the IT stocks continued to move higher for the third consecutive day. The Nifty IT index went up by 6.24 per cent in the last three days. The Banknifty closed above the four day's high.

As mentioned yesterday, the tight range breakout with an aggressive move will result further up move. The Nifty took support at 5EMA. None of the indicators is showing negative bias. Even the shortest period averages are also trending upsides. There is no flatness too.

The buying interest in the dips and highs shows the strength of the market. Since 30th October, it only thrice it closed below the prior low and is limited to one day. In this background, closing below the prior bar low is not only the criteria to look for bearish view.

The short term averages must turn down along with the 20DMA flattening. Since March low, several technical patterns failed to get confirmation on the bearish side. So let us wait for a simple trend reversal signs. Now the support levels further inched up to 14,066-13,985 zone. As we are trading at a new lifetime high and uncharted territory, there are no resistances. As mentioned in the weekly column, the targets are open to 14,375 for now. Be with the trend and time to be cautious, not complacent.

(The author is a financial Journalist, technical analyst, trainer, family fund manager)