Nifty 50 continues higher on upbeat earnings, as the index started lower but managed to rebound and finished the session close to daily high, as the bulls are in full control of the index. Nifty 50 run an impressive rally after India’s Finance Minister announced in September a cut to corporate tax rates for Indian companies to 22%. The S&P BSE Sensex closed at a fresh closing highs at 40,653.74
Reserve Bank of India cut the interest rates on October by 25 basis point to 5.1% at it’s the lowest level since 2010
Nifty positive momentum is intact as the index trades above all major daily moving averages. Nifty settled above the critical 12,000 mark and now a move to 52 week highs at 12,103 looks possible. On the upside, immediate resistance is at 12,021 today’s high while more pressure will be met at 12,100 the all-time high, a break above will open the way for a visit to 12,200 round figure. Investors looking to enter long positions can buy if the index closes above 12,021 daily top, targeting the 12,100 for profits, and can keep their long positions as far the index is trading above the 12,000 mark.
On the downside Nifty 50 first support stands at 11,946 today’s low and then at 11,850 the recent support line. A break below that support level might open the way for a move down to 100-day moving average at 11,386. Nifty has formed a strong floor at 10,681 since August which absorbed all the offers and signalled the rebound close to record highs.