Hot Stocks: Fresh highs possible if Nifty50 closes above 11,700 levels

During the past few sessions, the index Nifty surged from 11,200 to almost 11,600 mark. Now, the index has been sustaining well above its 200-Day Simple moving average.

Also, it has managed to clear the resistance of 11,555. Going ahead, in order to maintain the upside momentum and enter a fresh Bull Run, the Nifty50 will have to clear the final hurdles of 11,600 and 11,700.

The first is the placement of falling trend line formed by joining the swing highs of 12,103 (June 2019) and 11,982 (July 2019) and the latter is 11,700 which is the previous swing high.

A move above 11,700 could be an extremely strong sign for the bulls because, above 11700, NIFTY has the potential to make a new life high.

Hence, we would advise traders to initiate fresh longs once Nifty50 crosses the mentioned zone. On the downside, the intermediate support has been shifted to 11,400.

A move below the same might halt the upside momentum and we could witness some profit booking. Meanwhile, the Nifty Bank index has been lagging behind.