Hot Stocks: A decisive break above 11,700 could take the Nifty to 12,000 levels
Episode 1801, Oct 17, 2019, 02:00 AM
Nifty on October 16 traded in a narrow range and formed a Doji candlestick pattern, which shows indecision among traders.
The current ongoing formation in the benchmark index suggests a V-shaped reversal pattern that will get completed around 11,700 levels.
In the last two weeks, the Nifty was trading between its 50 and 100-day simple moving average (SMA) on the daily interval.
On October 16 due to a gap-up opening above 11,400, it witnessed a breakout on the upper side of the band, which is a positive sign.
Going forward, 11,100 will act as immediate support for the Nifty. On the higher side, 11,700 will be the next resistance for the benchmark index.
A decisive break above 11,700 will definitely offer a range breakout, which will further open the gates for the index to retest 12,000 levels. A failure to sustain above the 11,100 mark will bring a fresh round of selling in the market.