by mydhanush on 13 November 2023, 4 min read
Nifty formed a bullish candle on the daily chart as it seems that the Index is coming out of the consolidation phase. Though Nifty has been able to scale and is still sustaining above the short-term average of 21-day EMA but 50 DMA possess challenges for Nifty around the level of 19600-19600 range.
It was a bumper day on Dalal Street on the auspicious occasion of Diwali as buyers cheered taking the stock market higher. Sensex jumped 354.77 points or 0.55 percent to 65,259.45. NSE Nifty 50 index gained 0.52 percent or 100.20 points to 19,525.55 on November 12.
The total market cap of BSE-listed companies shot up to Rs 322.52 lakh crore, adding Rs 2.22 lakh crore to the investor wealth in 60 minutes of trading. Investors’ wealth rose by Rs 62 crore every second during the trade.
Technical Analysis:
On the technical front, Nifty formed a bullish candle on the daily chart as it seems that the Index is coming out of the consolidation phase. Though Nifty has been able to scale and is still sustaining above the short-term average of 21-day EMA but 50 DMA possess challenges for Nifty around the level of 19600-19600 range.
Technical Indicator ‘Bollinger Band’ expanding too indicates that the rally in the market is most likely to witness an extension. Now Index is set to scale the 50-DMA presently placed at 19571, sustained close above the said level can extend the Index rally towards 19800 in the coming weeks as it is the placement of resistance trend line (19600) drawn adjoining Sep-Oct highs. Hence, buy on dips would be the prudent strategy to adopt. However, if Index fails to do so then bearish Flag pattern might be underway and downside zone of 19050-19000 will act as immediate support for the index.
Asian Markets:
Stocks in Asia rose on Monday while Treasuries and the dollar kept their composure, as investors took their lead from Wall Street’s Friday rally, shrugging off a Moody’s downgrade to the US credit outlook.
Japan’s Nikkei rose 0.46%, with chip-related shares providing the biggest boost. Taiwan’s tech-heavy equity benchmark rallied 1.17%. Hong Kong’s Hang Seng gained 0.49% amid an outperformance in tech shares.
US Markets:
Wall Street’s main indexes ended with big gains on Friday, boosted by heavyweight tech and growth stocks as Treasury yields calmed, while investors looked ahead to a next week’s reports on inflation and other economic data.
The Dow Jones Industrial Average rose 391.16 points, or 1.15%, to 34,283.1, the S&P 500 gained 67.89 points, or 1.56%, to 4,415.24 and the Nasdaq Composite gained 276.66 points, or 2.05%, to 13,798.11.
Moody’s changes US ratings outlook to negative, affirms AAA
Moody’s on Friday changed the outlook on the government of United States of America’s ratings to “negative” from “stable”.
The rating agency said it expects United States’ fiscal deficits will remain very large, significantly weakening debt affordability. Moody’s affirmed the long-term issuer and senior unsecured ratings at “Aaa”.
Stocks on the radar:
FII and DII data
Foreign institutional investors bought shares worth Rs 95.31 crore, while domestic institutional investors sold Rs 190.06 crore worth of stocks on November 12, provisional data from the National Stock Exchange showed.
Stock under F&O ban on NSE
The NSE added Manappuram Finance and Zee Entertainment Enterprises to its F&O ban list for November 12, while retaining Chambal Fertilisers and Chemicals, Delta Corp, GNFC, and MCX India in the list. Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
Insider Trades:
Oil prices ease on worries of waning demand in US and China
Oil prices eased on Monday, reversing their rally on Friday, as renewed concerns over waning demand in the United States and China dented market sentiment.
Brent crude futures for January were down 35 cents, or 0.4%, at $81.08 a barrel at 0051 GMT, while the US West Texas Intermediate (WTI) crude futures for December were at $76.82, down 35 cents, or 0.5%.
Disclaimer:
The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk.
Please consult with a financial advisor before making any investment decisions.
Open Free Demat Account!
In just a few minutes, Simply provide some basic personal details, to get started.