Nifty 13500 level to be watched next week; trend positive, says HDFC Securities
Asian shares scaled a record high on Friday on growing prospects of a large U.S. economic stimulus package. European markets edged slightly higher on Friday as investors monitor prospects of a U.S. stimulus package and a last-minute Brexit trade deal. The MSCI’s emerging market currency index stood at 2 1/2-year high, having gained more than 10% from its March trough.
After opening on a positive note on Friday, the market has witnessed a decent upmove in the early part of the session: Reuters
Indian benchmark equity indices rallied and closed at another record high after the RBI kept rates on hold and did not announce steps to withdraw liquidity in the system. It raised the growth forecasts as well as inflation forecasts. At close, the Nifty was up 125 points or 0.95% at 13,259. The Nifty rose for the fifth consecutive week, rising 2.23% for the week.
Volumes on the NSE were higher than recent average. Among sectors, Banks, Metals, Infra, Realty, Pharma, FMCG indices rose the most while energy index ended in the negative.
Asian shares scaled a record high on Friday on growing prospects of a large U.S. economic stimulus package. European markets edged slightly higher on Friday as investors monitor prospects of a U.S. stimulus package and a last-minute Brexit trade deal. The MSCI’s emerging market currency index stood at 2 1/2-year high, having gained more than 10% from its March trough.
Nifty closed the week up for the fifth consecutive week. While the trigger of RBI policy is out of the way, markets globally now look forward to rising chances of an early US economic stimulus package. Post a good weekly close, we may see some more upside in the early part of the week.
After showing a minor intraday weakness with range bound action on Thursday, Nifty witnessed a sustained upmove on Friday amidst volatility and closed the day higher by 124 points. A long positive candle was formed, that closed near the new all time high of 13280 levels.
After opening on a positive note on Friday, the market has witnessed a decent upmove in the early part of the session. Intraday weakness of mid part has been absorbed by bulls to pull the market towards new highs in the later part of the session. The outcome of RBI's mid quarter policy meet seems to have turned out to be an uptrend continuation for the market.
The formation of long positive candles on Friday has surpassed the high of previous negative candle pattern of bearish engulfing (25th Nov) and closed higher. This is a positive indication and the negation of this pattern could mean more upside for the market in the near term.
Nifty on the weekly chart formed a long bull candle and closed the week towards the new highs. The sharp weekly gains came in the week after the sluggish market movement of the previous couple of weeks.
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The confusing weekly pattern of doji has been negated on Friday, as Nifty closed above the high of last week at 13145. This could be considered as the strength of an upside momentum post upside breakout of long term resistance of uptrend line (connected from top to top-weekly timeframe). This is a positive signal and more upside could be expected in coming weeks.
Conclusion: The short term trend of Nifty continues to be positive. The pickup of upside momentum in the later part and the negation of bearish pattern of daily (bearish engulfing) and weekly (doji) timeframe chart is expected to result in further strengthening of upmove in the near term. The upside levels to be watched for the next week is at 13500 levels and the immediate support is placed at 13150.
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Reported By: ZeeBiz WebTeam
Written By: Rahul Kamdar
Edited By: Harish Dugh
Updated: Fri, Dec 04, 2020
05:44 PM IST
05:44 PM IST
Mumbai, ZeeBiz WebDesk
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