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Nifty is trading in highly overbought zone, avoid fresh long: Sameet Chavan

13,650 is the immediate support which, if breached, could result in some profit booking and drag the index towards 13,500-13,470

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Usually, when the momentum readings are in such overbought zone and market approaches resistance, it leads to either a price-wise or a time-wise correction in short term

Sameet Chavan Mumbai

3 min read Last Updated : Dec 21 2020 | 7:46 AM IST

Nifty started the previous week tad below 13,600 and consolidated in a narrow range for the initial couple of sessions. However, positive global market sentiments, later, provided an impetus to the ongoing rally and the index continued it uptrend for the rest of the week to clock new records and ended above 13,750 on Friday.

The bulls seem to be reluctant to give up and hence, we have seen intra-day dips getting bought into throughout the week. Nifty is trading near all-time high and although there's no limit on the upside, reciprocal retracements usually indicates where the markets could resist

Topics : Stock calls Nifty Outlook Markets Market technicals Lupin Bharat Electronics

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