Technically, the Nifty seems to be looking strong now. Hence, 19,600-19,700 is expected to be key resistance area initially for the Nifty50 followed by 19,800-19,900 levels
With the markets scaling new highs, as many as 43 stocks from the Nifty50 index and 27 of the 30 scrips that are part of the S&P BSE Sensex are trading above their respective 200-day moving average (DMA).
The 200-DMA is seen as one of the most relevant trend indicators by investors and traders, who believe that stocks and indices trading above this level possess strength and are likely to rally in the short to medium term, while the ones trading below this level are viewed as bearish and expected to see a sell-off.
Wipro, UPL, Kotak Mahindra Bank, Hindalco, Infosys, Cipla, and Adani Enterprises are the only stocks from the Nifty50 pack that are still below their respective 200-DMA, the exchange data suggests.
Indian stock indices, the Sensex and the Nifty, reached new all-time highs on July 3, driven by gains in heavyweights such as HDFC, ICICI Bank, and Reliance Industries. Mid and smallcap stocks also hit record highs.
Buy AB Capital Rs 170 Put option and simultaneously Sell Rs 165 Put of the June series, suggests Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.
The momentum is expected to take the index up to 19,000 mark in the coming days, with immediate support at 18,800, then 18,700-18,500 area, experts said