HDFC Securities said that Indian equity benchmark indices had a wild and volatile day today with alternate bouts of buying and selling.  At close Nifty gained 95 points, or 0.80 percent, up at 11,908.50. Nifty formed a triple top in the 11920-11930 band.
 
Volumes on the NSE were just above the recent average.  Among sectors, Pharma, I.T. and Banks were the main gainers while Realty ended in the negative. 
 
Global markets were volatile as early results from the U.S. presidential election proved far closer than polls had predicted, potentially leaving the outcome in doubt for days to come. Investors had initially wagered that a possible Democratic sweep by Biden could ease political risk while promising a huge boost to fiscal stimulus.
 
European markets slid at the open on Wednesday, shortly after Donald Trump prematurely claimed he had won the U.S. election despite millions of votes remaining uncounted in a tight race. Trump played the voter fraud card which unsettled markets as a long and protracted battle in the courts is precisely what investors do not want. Later Biden regained lead resulting in European markets bouncing up from early weakness.
 
Analysts have said a Biden victory could weaken the dollar and lift trade-exposed currencies, as it is expected to adopt a less combative stance on the region's economic engine, China, and a steadier foreign and trade policy overall.  
 
A gauge of India’s services sector moved back into the expansion zone for the first time in eight months as economic activity continues to pick up on easing lockdown curbs. The India Services Business Activity Index, compiled by IHS Markit, stood at 54.1 in October compared with 49.8 in September.
 
Nifty has closed at the highest since Oct 23 and is just 118 points away from making a recent high. This does not seem difficult despite the uncertainty over the final outcome of US Presidential elections.
 
Nifty witnessed a roller coaster ride today, by showing intraday volatility on the backdrop of the U.S. election and closed the day higher by 95 points. A long bull candle was formed today, that closed near the upper end of the day's range.
 
After opening on a positive note, Nifty showed volatile up and down swings for the day, which was mainly driven by the sentiments of the U.S. Presidential Election. A smart upside recovery has witnessed in the later part and the market closed near the highs.
 
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Nifty is now entering a crucial resistance zone of around 11900-11950 levels and is now facing hurdle at the down sloping minor trend line. Hence, there is a possibility of consolidation or minor profit booking from around 11925-11950 levels in the next session. The expected profit booking is not expected to change the positive status of the short term trend, as one could see an emergence of buying from the lows of 11800 levels.
 
Nifty on the weekly chart sustained on a support of a significant trend line at 11600 levels. Nifty is currently nearing a crucial weekly resistance of the high of the last one month around 11950-12025 levels. Hence, there is a possibility of minor weakness from here or from the highs, before showing any sharp upside breakout of the hurdle.
 
Conclusion: The short term trend of Nifty remains positive. Having moved up sharply in the last two sessions and placed near the crucial resistance zone (11950-12050), there is a possibility of minor profit booking from the highs, before showing any upside breakout of the hurdle. Any dips down to the level of 11800 – 11750 on Nifty is going to be a buy on dips opportunity in the market for the next few sessions.