Even as Nifty started the new series on a lukewarm note, technical analysts are estimating the index will inch closer to 19,000 level by the end of the series, and in the process climb to a new peak.
The Nifty and Nifty Bank have seen aggressive long rollovers from previous series to December series. This means traders who were bullish earlier have maintained their stance, rolling over their positions in the next month contract as well.
Rollovers for Nifty and Nifty Bank stood at 82 percent and 88 percent versus 76 percent and 82 percent, respectively, in the prior month. Foreign institutional investors (FIIs) remained net buyers on index futures but trimmed their stocks’ futures positions.
“Going into December series, we will stick to our bullish stance…eyeing all-time highs. Our Nifty target for December series will be 18,900 with key support placed at 18,100,” said Sriram Velayudhan, an analyst at IIFL Securities.
The trend of the last 20 years for the month of December also shows Nifty having 80 percent probability of closing in the green. In this study period, out of all the months, December has also given the highest average monthly gains of about 3.2 percent.
