InvestorQ : What is your trading and investing view on the market for the 17 November 2020? Do you see the Nifty getting to 13,000?
Katherine Gonsalves made post

What is your trading and investing view on the market for the 17 November 2020? Do you see the Nifty getting to 13,000?

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diksha shah answered.
2 weeks ago
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Indian markets open on 17 November after a gap of 3 days due to Diwali. The Nifty closed on Muhurat Trading day on Saturday evening very near to the 12,800 mark. For now it looks like 13,000 may be the next real resistance for the Nifty index.

If you look at the accumulation of open interest or OI in calls and puts of the Nifty, then it is the level of 12,600 on the downside and 13,000 on the upside that is relevant. That is the broad range that the Nifty is likely to trade at for the time being.

An interesting story that is building up is the next steps for BPCL divestment after the last date closed on 16 November. With RIL and Aramco out of the BPCL race, it could be one more government owned PSU that could fall into the lap of Anil Agarwal of Vedanta.

The big story in the last few days has been FPI flows. FPIs were net sellers to the tune of Rs.78 crore while DFIs sold Rs.21 crore on Muhurat Trading day but that may not be too relevant. What really matters is that FPIs infused Rs.35,000 crore in the first two weeks of November; as much as they did in the first seven months.

Global trends for Nov 17 appear to be quite strong. Bulls were back in global markets on Monday, when Indian markets were shut. Dow gained 1.6% as did most of the European markets and NASDAQ also closed nearly 1% higher. Even the SGX Nifty is up 50 bps in early trades on Monday and it does look like another strong day.

Ideally, my suggestion is that you must use every possible opportunity to take profits off the table because there are no immediate triggers available. With the US elections done and the stimulus out of the way and most Q2 results through, pressure is likely at higher Nifty levels.

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