Bulls pushing Sensex & Nifty higher, but traders should not get too excited.
NEW DELHI: Whenever the market breaks out of a narrow range, the consensus view usually turns bullish, but lack of momentum and followup buying usually are the two main culprits that spoil the party for the bulls.If history is something to go by, the domestic market has come under pressure whenever it has come closer to its key resistance levels. For Nifty50, key resistance levels are at 7,900 and 8,000, where there is heavy build up of Call options. On technical parameters, a close above 7,880 would give confidence to traders. Till that time, analysts are advising caution. The index has reversed the trend four times so far in 2016, once when Nifty50 came closer to the 7,800 level and thrice when it came closer to the 8,000 level.