Indian Benchmark indices ended higher for the third consecutive session on Nov 17 and ended at record highs. Nifty opened gap up following bullish Asian markets but sold off in the first few minutes of trade. It made a bottom at 11.15 am and then rose gradually through the day. At close, the Nifty was up 93.90 points or 0.73% at 12,874.20.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Volumes on the NSE were significantly higher than recent average.  Among sectors, Nifty Metal and Nifty Bank indices rose over 2 percent each with Realty and Auto stocks also rising, while the energy, pharma and IT stocks ended weak.

Asian stocks held gains and moved further into record territory on Tuesday, after U.S. benchmarks were pepped up by news of another promising coronavirus vaccine. European stock markets drifted lower Tuesday, amid caution over the economic outlook post the restrictions to combat the Covid-19 surge despite the latest positive Covid-19 vaccine news.

Nifty fell after opening with a gap up, but recovered most of the lost ground. Volumes remain at a high level suggesting enough participation from institutions and traders. A hammer-like formation at the top, however, suggests some caution as all indicators are extremely overbought. On rises, 12934 could offer resistance while 12828 could offer support in the near term.

The upside momentum continued in the market from a Diwali Muhurat trading session, after a minor pause and Nifty closed the day (Tuesday) with another handsome gains of 93 points. After opening on a positive note, the market shifted into a narrow high low range for the whole session. Minor intraday dips were used to move up slightly and a new all time high was registered on Tuesday at 12934 levels.

A small negative candle was formed at the highs with lower shadow, which signal buy on dips in the market amidst a range movement. The market breadth was slightly positive and broad market indices like midcap 100 and small cap 100 have ended higher by 1.11% and 0.26% respectively.

Nifty continued its uptrend for three consecutive sessions, after a pause of one session (12th Nov). HDFC Securities observes a smaller degree of higher tops and bottoms on the daily chart and a recent dip in the market of 13th Nov could be considered as a new higher bottom of the sequence. Hence, a present up move could continue for another 1-2 sessions before showing another higher top at the new highs.

See Zee Business Live TV Streaming Below:

Nifty has reached the long term resistance of significant uptrend line (trend line connected the rising tops of the last two year-as per weekly/monthly chart). Presently, Nifty is making an attempt of breaking above this crucial overhead resistance at 12850 levels. Any slowing down of upside momentum around this area could bring some profit booking from the highs and a decisive/ sustainable move could open the next upside target of 13500 levels.

Conclusion: The short term trend of Nifty continues to be positive. The market is now placed at the make or break area of 12850-12900 levels in the short term. Inability to generate further strength in the upside momentum could result in a minor weakness from the highs in the next 1-2 sessions. A decisive move above this hurdle could open the next upside target of 13500 for the next couple of weeks