Planning to go short? Think twice as Nifty is all set to hit 13,000 by December 2018
A cautionary stance is necessary at current level as the index is trading near key resistance levels, but is it the time to go short? Well, as long as Nifty trades above key support levels, traders should avoid taking contra bets at the current level and ride the momentum on the upside.
A large part of the euphoria could be attributed to pre-budget rally as investors are factoring a big bang growth focused Budget from the Modi government.
It will be futile to go short in this market at the current level and investors should wait for a confirmation, that’s the word of advice coming from technical pundits who are tracking markets on a daily basis.
“The Nifty registered breakouts across the time frames which is suggesting that the bull is still young and getting strengthened further with broad-based participation as laggards like IT have also become active and making new lifetime highs,”.
“Metals have a long way to go which may help indices in maintain higher levels. Hence, post-budget if market sustains above the critical supports of 10300 (on monthly closing basis) one can expect the momentum to remain intact and in that scenario, we will not be surprised to see indices trading close to 13,000 levels between December 2018 to March 2019,”