InvestorQ : What is your stock market view for trading on Monday, the 23 November 2020? Do you see the Nifty getting closer to 13,000 levels?
Aditi Sharma made post

What is your stock market view for trading on Monday, the 23 November 2020? Do you see the Nifty getting closer to 13,000 levels?

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diksha shah answered.
3 months ago
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On Friday, the Nifty closed strong at 12,859 levels, which is less than 150 points from the psychological mark of 13,000. The Sensex is also within touching distance of its immediate resistance levels of 44,000 and 45,000 levels. That could be the levels to watch out for.

One aspect to focus on this week is the volatility index or the VIX. If the VIX stays below 20, it is a kind of affirmation that the markets will find support around these levels. Only if VIX spikes above the 27-28 mark that there could be the risk of a sharp correction.

In the coming days, the macro announcements will hold the key. There is the core sector data, the PMI manufacturing and services as well as the quarterly GDP data for Sep-20. If the macro data is also supportive of solid Q2 results, markets should be pleased.

The big story is the continued positivity of the foreign investors. FPIs were net buyers of Rs.3861 crore in equity on Friday while DFIs sold Rs2869 crore. FPIs continued to be buyers even when markets corrected on Thursday. FPI put in Rs. 50,000 crore in Nov-20 MTD.

On Friday, the Dow and the NASDAQ came under pressure over rising COVID cases in the US. The European markets were in the positive but SGX Nifty has been trading with small losses in early trades. The rise in COVID cases may be a concern for markets.

Over the weekend, two reports by the Independent Working Group on bank ownership and the delisting proposals by SEBI are critical. In fact, the IWG report is likely to spur a lot of fresh flows into private banks and large NBFCs. So, sentiments are likely to be robust.


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