Indian Benchmark equity indices started a fresh week on the strong note boosted by encouraging Q2 GDP data. Nifty opened higher and kept rising gradually through the day with minimal correction. At close the Nifty was up 140 points or 1.08% at 13,109. Volumes on the NSE were a little below recent average. Among sectors, Realty and PSU Banks rose the most followed by IT, Pharma, Media and Metals indices.
 
Meanwhile in the Asia-Pacific markets, shares were higher in Tuesday trade as investors reacted to the release of a private survey of China’s manufacturing activity. The Caixin/Markit manufacturing Purchasing Managers’ Index for November came in at 54.9, its highest reading in a decade. European equities started December on a bright note, following a record November, after encouraging Chinese factory data prompted investors to look ahead to a global economic recovery.
 
India’s PMI Manufacturing index for November fell to its lowest in three months, reflecting the slower increase in sales and production. The index eased to 56.3 in November from 58.9 in October, a decadal high. Although the slowest for three months, the rate of expansion in output was sharp and outpaced its long-run average.
 
India’s GST collections for November remained above the Rs 1 lakh cr mark for the second consecutive month as consumption picked up amid the festive season after India lifted lockdown restrictions. GST revenue for October, collected in November, stood at Rs 1.05 lakh crore. That was largely unchanged compared to the previous month and 1.4% higher than that in Oct 2019.
 
Nifty is not very far from its recent all-time high of 13146 and going by the recent momentum it does not look tough for the Nifty to touch/breach it. On falls 12987 could provide support. HDFC Securities are seeing stocks that have underperformed so far coming into favour and this rotation continues.
 
After showing consolidation type movement on Friday, Nifty shifted into a decent upmove on Monday and closed the day with handsome gains of around 140 points. After opening on a positive note, Nifty slipped into minor decline soon after the opening. it later shifted into a sustainable upmove from the intraday lows and finally closed near the highs. Minor intraday corrections have created minor buy on dips opportunities for the day.
 
A small positive candle was formed with a long lower shadow. Technically, this pattern could indicate a buy on dips opportunity in the market. Recently, HDFC Securities observed formation of few lower shadows in the daily candles, which signal that bulls are not willing to give up, despite new all time highs and overhead resistances.
 
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After the formation of the bearish engulfing pattern of 25th Nov at 13145, Nifty failed to show any bearish implication three sessions after this formation. This market action opens a higher possibility of further upmove above 13145 levels in the coming session by negating the bearish engulfing pattern. In such an event, one may expect more upside in the near term.
 
Nifty on the weekly chart formed a doji type candle pattern at the new highs last week. Presently, the market is moving up in the intra-week and is expected to challenge the high of the doji pattern at 13145 in the coming session. A sustainable move above doji (weekly chart) / bearish engulfing (daily chart) at 13145 could mean more upside for the market in the near term.
 
Conclusion: The short term trend of Nifty continues to be positive. Further upside above 13145 is expected to negate a couple of bearish patterns, as per daily and weekly time frame chart and that is expected to open the next upside levels of 13500 in the near term. Immediate support is placed at 12960.