For the week to November 6, 2020, after gaining for the fifth consecutive day, Nifty and Sensex on a weekly basis recorded spectacular gains of over 5 percent. Sector wise Nifty Bank outperformed rallying as much as 12 percent. Experts are of the view that the stress on banks in relation to non-performing accounts or bad loans may ease which is providing a momentum to stocks from the banking, financial space.
At the close of November 6, 2020, Nifty settled at 12263, up 1.18 percent, while Sensex gained 1.34 percent to levels of 41893.
In the run up to the US election and now as voting is in progress with Joe Biden close to clinch the US Presidency, global markets headed higher including Indian markets. Also other factors that drove Indian indices higher during the week include better than expected Q2FY21 earnings from India Inc., robust macro (GST collection and Services PMI indicating green shoots in the economy) and strong FII flow.
What Nifty weekly chart make of this sharp run-up on the indices during the week?
Nifty is just 167 points away from the all time high. And the possible run does not seems difficult given the positive momentum on the Nifty for the last few days but the global markets are giving indications of slow down.
Nifty weekly chart indicates that if Nifty sustains to trade above 12100 it may hit new all time high very soon and witness levels of between 12400-12500 in the near term (of more than 12430 as per estimates of HDFC Securities). Weekly RSI has also surpassed levels of 60 that suggests further bullish momentum in the market. Further, a sustainable move above the specified hurdle will pull Nifty towards
12600-12700 levels in the next few weeks.