Markets vault to fresh highs amid mixed Asian cues

The stock markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, largely dominated by Auto and IT stocks. Benchmark Nifty maintained a strong breakout continuation formation which clearly suggests further uptrend from current levels.

The Sensex was up 452.74 points or 0.75% at 60,737.05, and the Nifty was up 169.80 points or 0.94% at 18,161.80. About 1602 shares have advanced, 1504 shares declined, and 118 shares are unchanged.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty made a new lifetime high of 18,197 today.It closed at 18,160, up by 170 points since October 13 close. Volumes in Nifty were higher than its average which is a good sign for longs.

Nifty has a strong support in the 18,050-18,110 range. Traders can use buy on dips strategy with strict stoploss for 18,250-18,300 as targets".

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "We are of the view that the short-term chart formation is still in to the long side, but due to an overstretched intraday rally the bulls may take a caution stance between 18,25018,275 levels. For day traders, 18100 would act as a key support level.

Above the same, the uptrend wave will continue up to 18,200-18,275 levels. On the other hand, dismissal of 18,100 could possibly trigger a correction wave up to 18,04017,980 levels."

Palak Kothari, Research Associate, Choice Broking, said, "Amongst the NIFTY 50 index, 34 stocks posted gains.

On the sectoral font, the auto index is up over 4% and metal, energy, power indices up 1-2%.

On the technical front, the Index has given a breakout of the rising trendline as well as given a close above the same, which points out buyers are active. A daily momentum indicator Stochastic and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price.

The ADX indicator is reading at 38 with +DI trading above – DI, which points out strength in the counter. Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term.

At present, the Index has immediate support at 18,000 level while sustained above it can show 18,300-18,400 levels."