Nifty extended its record run into the seventh consecutive session on December 9 and closed at an all-time high.

The benchmark index has sustained above the previous consolidation which suggests the continuation of buying.

The momentum indicator RSI (14) has been in a bullish crossover and has a current reading of 78 on the daily timeframe.

Since Nifty has broken its horizontal resistance line at 12,500, it has roared 1,000 points in only five weekly candles which indicates we are in the wave of a strong bull market.

The majority of IT stocks have come out of their consolidation range and will likely outperform in the coming trading sessions.

Currently, we are in a scenario where the majority of the indicators are in the overbought zone.

An overbought zone doesn’t mean an immediate sell as whenever any stock or index is in a strong uptrend, indicators normally stay at the higher range.

Going forward, the trend in Nifty may remain bullish. On the higher end, the rally may extend towards 13,765. On the lower end, support is placed at 13,200.