The Nifty took a pit stop on November 12 after rallying for eight straight sessions. The index traded in a narrow range and formed an Inside bar on the daily chart. This suggests that the index has stepped into a brief consolidation mode. The consolidation can take place in the range of 12570-12770 and will allow the overbought short-term momentum indicators to cool off. So the overall structure shows that the sideways action will make room for the index to stretch higher after the brief pause. Key short-term targets on the upside are 12850 & 13000
Other technical observations:

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On the daily chart, the Nifty is above the 20-day moving average (DMA) and the 40-DEMA, i.e. 12015 and 11856 respectively. The momentum indicator is bullish on the daily chart. On the hourly chart, the Nifty is above the 20-hour moving average (HMA) and the 40-HEMA, i.e. 12667 and 12475 respectively. The hourly momentum indicator is bearish. The market breadth was positive with 1115 advances and 713 declines on the National Stock Exchange.

The markets began October on a tepid note amid rising uncertainty. A second wave of COVID-19 cases around the world, fresh lockdowns and volatility in the run-up to the US elections, put the brakes on the market spirits. However, the spirits are pretty high now. Fortunately, it has been the culmination of global and domestic factors that have enabled Nifty to surpass the physiologically important 12,000 level. Benchmark indices stand within striking distance of all time high levels now.

Globally, sentiments are boosted by another gush of liquidity with a follow-up round of quantitative easing in the UK and easing of logjam on a further fiscal stimulus in the US post the elections. The results of the US polls itself, though unexpected, have turned out to be positive for equities. Though the Democrats (Joe Biden) have won the tight race to the White House, the Republicans have gained a majority in the Senate and block the unhealthy tax hikes on corporates and other socialist policies of the Democrats. Additional fiscal stimulus is likely to be a consensus move by both sides, while the US Federal Reserve maintains a dovish stance irrespective of the government at helm.

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Domestically, macro-economic data points have been quite encouraging lately and the result season reflects a better than expected recovery trend across various sectors. Apart from the continued healthy results from the pharma, IT Services, chemicals and certain consumer segments, the highlight of the result season is the easing of asset quality issues in leading banks and financial companies.