Nifty 50 finished just below the 12,000 mark while the improved sentiment on Indian equities sends the Sensex to all-time highs. Indian equities and Nifty 50 get a boost from the September corporate tax cut, the government plans to divest the pulic sector companies and a possible trade deal between China and US in December. The rally in Indian equities started after India announced in September a cut to corporate tax rates for Indian companies to 22%.
Reserve Bank of India also supported stocks as it cut the interest rates on October by 25 basis point to 5.1% at it’s the lowest level since 2010.
Nifty 50 is getting closer to new highs as the bullish momentum in stocks globally is intact. Nifty 50 ended 59 points or 0.49% higher at 11,999.10 and now a move to 52-week highs at 12,103 is the possible scenario. The index failed to close above the 12,000 mark even during the session climbed up to 12,038. The Doji formed today in Nifty is a warning signal as when it occurs close to highs it might signal a reversal in the recent uptrend, so tomorrow’s trading session is critical as traders will look for a confirmation of the Doji formation.
Bulls will meet the first hurdle at 12,038 today’s high while more pressure will be met at 12,103 the all-time high, a break above will open the way for a visit to 12,200 round figure.
On the other hand, Nifty 50 first support will be met at 11,966 today’s low while the October support line at 11,850might provides extra support. A break below that support level might open the way for a move down to 50-day moving average at 11,490.