Nifty hits record high amid US-Iran tension and closed above 12250

The market started the week with a strong selloff on the back ofgeopolitical tension after a senior Iranian military official was killed in aUnited States airstrike.

However with the easing tension between the two countries, bulls tookcharge and led Nifty post their biggest single-day gains in three months duringthe trading session on January 9. The rally continued on January 10 with theNifty touching a fresh record high of 12,311.20.

Nifty  Hourly

The index after hitting fresh high in the first half on Friday’s session, witnessed profit booking in the second half and closed just below the resistance zone at 12256.5. Technical parameters including RSI, Stochastic and CCI are trading very close to the respective overbought zone which suggest strength in the shorter timeframe.

Probable support in the near term comes at 12180 and next support at 12120.However, immediate resistance in the short term comes at 12290-12310.

Nifty Daily

In the Daily chart, Nifty trading in a Megaphone pattern or a broadeningtriangle pattern and closed just below the daily resistance zone. Sustainablemove above swing high of 12311.2 may lead to further strength in the shortterm.

Nifty formed a doji candle on friday’s session which suggest indecision inthe market and move either side of the candle may decide fresh move in thecoming week.

Technical parameters looks positive to neutral as of now and probablesupport on the downside comes at 12150 and 12050 as of now.

Nifty Weekly

The index formed a positive candle for the week which shows the overalltrend for the index continues to be strong. However, the market can continue toremain volatile in the short term. Until the index breaks and sustains abovethe new high of 12311.2, the consolidation in the range of 12000-12300 islikely to be seen.

Probable resistance as per the upper trend line comes at 12400-12450which is likely to act as a crucial resistance as of now. Breakout above 12500may lead to steep move in the index. Probable support comes at 11900-11950 inthe weekly chart.