Stock Market Daily Updates: 11 Nov 2020

Dear Trader…

Deepawali has arrived early in the Indian stock market. The Nifty future index continued headed towards a new lifetime high of 12667 levels and Sensex hit a new high of 43316 levels with the expected stormy rally. Nifty formed a Bullish candle with a long lower shadow on a daily scale which indicates bulls are holding a tight grip in the market tracking a global market rally driven by Pfizer's progress in the development of COVID-19 vaccine amid persistent foreign fund inflow.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 23575 crore till November 10, according to provisional exchange data. 

The exports during the first week of November last year was $5.51 billion Sentiments perked up as the country's exports grew 22.47 per cent year-on-year to $6.75 billion in the first week of November, mainly driven by healthy growth in pharmaceuticals, gems and jewellery and engineering sectors.

On the global front, the reason for the market frenzy is the victory of the Democratic candidate as the new president in the US and the positive unemployment figures released over the weekend. The U.S. saw a total of 6.38 million new jobs added in October, and the unemployment rate fell to 6.9% from 7.9% in September. Thus, positive data such as the reduction in unemployment after a growth rate of more than 3% in the third quarter is being released by the US. 

Democrat candidate Joe Biden's victory in the US was followed by a bullish move in global stock markets. In addition, the change of power in the United States was welcomed by the Indian business community as part of which the Indian stock markets were able to touch a new record level today.

The new government seems to be in India's interest, with strong ties between the two countries expected to improve and cooperation on the economic front to grow. 

Asian markets were trading mostly higher on hopes for progress toward a possible corona virus vaccine that might allow the world to revive manufacturing, shopping and normal life.

A massive relief package is now expected in the US after the election process is completed. The Fed Reserve in the US, which is going through the second round of covid -19, has been saying for a long time that there is a need for fiscal stimulus. However, no decision could be taken before the election. With 10 lakh new transitions in a week, the government is expected to take a quick decision on this.

The market is expected to continue on bullish momentum based on current price action, once the same break above the current resistance level holding near 12808. The upside rally could be testing all the way up to whole new levels in the upcoming sessions.

Alternatively, if the market struggles to break the resistance level of 12808, then it might retest the same and revise the trend to bearish mode. Key support holds near 12606-12575.

Dear Traders…. For the Trading Idea of…

• Nifty Future closed @ 12659 as on 10.11.2020

Nifty Future has resistance at 12686 – 12707 Point; above which other resistance levels are at 12717 – 12733 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 12616 – 12575 Point; below12575 Point, other support levels are at 12533 – 12505 Point.

I am positive for the next bullish trend only above @ 12733 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 @ 12733 Point, again then the upper side target is quite high and it may touch @ 12777 Point in the short term

• Bank Nifty Future closed @ 28640 as on 10.11.2020

Bank Nifty Future has resistance at 28707 – 28777 Point; above which other resistance levels are at 28808 – 28888 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 28577 – 28474 Point; below28474 Point, other support levels are at 28330 – 28280 Point.

I am positive for the next bullish trend only above @ 28888 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 @ 28888 Point, again then the upper side target is quite high and it may touch @ 29009 Point in the short term.

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