• The 50-point benchmark is currently above the 18,500 mark and has registered a nearly 3% gain so far in November. Unlike Sensex, its counterpart Nifty 50 is currently a little over 90 points away from touching its all-time high of 18,604.
The current month has been fruitful for Indian markets, with the Sensex hitting a new all-time high and the Nifty 50 hitting a 52-week high. The 50-point benchmark is currently trading above the 18,500 mark and has registered nearly 3% upside so far in November. Unlike Sensex, its counterpart Nifty 50 is currently a little over 90 points away from touching its all-time high of 18,604. Last week, domestic equities tracked positive Asian peers as they appreciated FOMC minutes that pointed to a less hawkish outlook in coming policies. This caused the dollar to decline, causing yields to decline and hence equities gained traction. A positive trend is being seen in Nifty 50 in the coming week.
On Friday, the Nifty 50 extended its rally for the fourth consecutive day and also touched a 52-week high of 18,534.90 during the day. However, the benchmark closed at 18,512.75, up 28.65 points or 0.15%. In the broad basket, the Midcap and Smallcap indices gained around 1% each. As far as sectoral indices are concerned, media stocks outperformed while auto, realty and oil & gas added substantial gains. Heavyweights like RIL, HDFC Life, Tata Motors, Hero MotoCorp and Coal India were the top performers. Markets were broadly on a positive note.
The Nifty 50 gained over 1% during the week ended November 25.
Meanwhile, on Friday, the Sensex closed at 62,293.64, up 20.96 points or 0.03%. But before that, the 30-point benchmark touched a fresh all-time high of 62,447.73 during the day driven by broad-based buying sentiment.
Rupak Dey, Senior Technical Analyst, LKP Securities said, "On the daily chart, Nifty has moved into a rising trend line connecting with the previous peaks. The momentum indicator has moved into a falling trend line on the daily time frame."
According to Apoorva Sheth, Head of Market Perspectives, SAMCO Securities, on the daily chart Nifty 50 is trading in a higher higher higher bottom structure and the extended rise in prices indicates a strong bullish trend. In the recent minor pullback, the price found support near its 21-day exponential moving average and quickly rebounded thereafter.
Seth said that now the rule of polarity will apply in Nifty where the former resistance will act as immediate support for the market. That said, the momentum oscillator RSI (14) on the daily chart has formed a bullish hidden divergence at the 55 -60 level, and thereafter the index started moving up with further strength.
On technical basis, expert at SAMCO believes that support for the index is placed near 18250 and any further move below this will extend the decline towards 18100 levels. Similarly, on the higher side, 18650 will be an immediate resistance followed by 18800 levels.
On the other hand, LKP Securities technical analyst said that based on the price chart and momentum indicator setup, we can predict that the index is on the verge of strong directional movement in the near term.
On the lower end, Rupak Dey said, "a fall below 18,450 could trigger a correction towards 18,100-18,000, while at the higher end, a move above 18,605 could prompt a decent rally in the market."
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