InvestorQ : What is your trading view for the 12 November for the stock markets and will the Nifty now scale 13,000 levels?
Arusha Ray made post

What is your trading view for the 12 November for the stock markets and will the Nifty now scale 13,000 levels?

Answer
image
diksha shah answered.
2 weeks ago
Follow

Before I get to the trading view, let me tell you that the Nifty is currently in uncharted territory. The 13,000 level does not have too much of significance but what you must watch is the A/D ratio. But, yes that would be the next psychological resistance for Nifty.

Now you must remember that the last leg of any rally is normally the short covering. Good quarterly results mean that shorts are rushing for cover; both in cash and in F&O. That has taken the Nifty to 12,750 levels. Unless fresh buying comes, there could be resistance.

Politically, the Bihar victory is significant as it comes after the COVID pandemic. Bihar verdict will be seen as a vote for continuation of reforms. The government has announced product linked incentives or PLI and has hinted at another stimulus package of $20 billion. That is good news flows for the market.

Foreign buying continues unabated. FPIs were net buyers to the tune of Rs.6207 crore while DFIs sold Rs.3464 crore on Wednesday. They infused nearly Rs.28,000 crore in 6 days into Indian equities and MSCI re-allocation is also playing a key role.

On Wednesday, the Dow and European indices were mildly positive but NASDAQ has shown strength of more than 2%. SGX Nifty is slightly tentative in early trades but this is the one cue to really look for as the Nifty has also worked on the premise of global support.

In a nutshell, to answer your question, 13,000 is a possibility although it may be a temporary resistance just like 12,000 was for quite some time. The biggest positive, in my view, is that quarterly results have been much better than anticipated. That could make a difference.

6 Views