Stock Market Daily Updates: 10 Nov 2020

Dear Trader…

Indian equity benchmarks hit a new record high as foreign funds continued to invest heavily in the Indian stock market, with a steady surge of funds in Banks, NBFCs, automobiles, oil & gas, telecom, utilities, capital goods, cement, and metal stocks on strong global cues after the US presidential election outcome and sustained foreign capital inflow into the domestic market.

The second round of outbreaks of the Corona virus in the United States and Europe has forced these countries to take strict lockdown measures again. Concerns have also been raised in some states in India over the resumption of the new round of Corona. But with this, the central government is now trying to bring the economy back to the path of recovery with repeated advice to people to be vigilant to avoid corona.

Foreign portfolio investors (FPI) have put in a net Rs 8400 crore into Indian markets in first five trading sessions of November, with participants growing more confident in view of resumption of business activities and better than expected quarterly numbers.

With the participation of the country's big industrialists in a virtual meeting organized by Prime Minister Shri Narendra Modi to attract global investors to India, there are indications that there are ample opportunities to attract huge influx of global investment in India.

Indian stock markets are heading for historic highs as last week's good numbers of services PMI, India's industrial production growth and inflation for September 2020 are expected to be released next week, along with global markets, will be keeping an eye on the area's industrial production for the month of September 2020, which will be released on November 12.

India VIX fell by 1.89 percent from 20.50 to 20.11 levels. The consistent fall in volatility after the end of the US election gave stability to the market and helped the market reach new record levels.

We might see a pause early next week but the bias would remain on the positive side and there’ll be no shortage of trading opportunities. However, we feel traders should maintain extra caution in the selection of stocks as we may continue to see volatile swings across the board.

Nifty future daily chart has formed "Rising wedge" pattern. The last few sessions ended up sideways along with some corrections inside the channel. The market is expected to continue on bullish momentum based on current price action, once the same break above a key resistance holding near 12303 levels. 

The upside rally could be testing all the way up to 12606-12808 levels in the short term. Alternatively, if the market struggles to break the resistance level, then it might retest the same and revise the trend to bearish mode.

Key support holds near 12272 levels. A slide to 12232-12202 is also a possibility if the price makes or break below the current support level.

Dear Traders…. For the Trading Idea of…

Nifty Future closed @ 12467 as on 09.11.2020

Nifty Future has resistance at 12505 – 12575 Point; above which other resistance levels are at 12606 – 12676 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 12373 – 12303 Point; below12303 Point, other support levels are at 12272 – 12202 Point.

I am positive for the next bullish trend only above @ 12606 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now

If Nifty Future crosses @ 12606 Point, again then the upper side target is quite high and it may touch @ 12676 Point in the short term

• Bank Nifty Future closed @ 27525 as on 09.11.2020

Bank Nifty Future has resistance at 27676 – 27808 Point; above which other resistance levels are at 27909 – 28008 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 27272 – 27070 Point; below27070 Point, other support levels are at 26939 – 26808 Point.

I am positive for the next bullish trend only above @ 28008 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now...!!

If Bank Nifty Future crosses @ 28008 Point, again then the upper side target is quite high and it may touch @ 28202 Point in the short term.

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