Market Outlook - Nov 2, 2020 - Reliance Securities

On Monday, NSE-NIFTY witnessed sharp decline post a stable start. Later the index took support at 11,557 level and advanced gradually during the day. On the higher side, its 20-day EMA (then placed at 11,726 mark) once again capped the up-move and dragged the index down. Finally, the index closed the day with the gain of 27 points at 11,669 level.

- NSE Cash segment reported turnover of Rs 55,466 crore as compared to Rs 50,598 crore reported earlier.

- Overall market breadth remained negative, where 680 stocks advanced against 1115 declined stocks.

- Mix trend was observed across sectoral indices during the day, where rate sensitive sectors emerged as top gainers and they have reported rise between 3.2% and 4.2%. However none of the sector index reported loss of more than 1%.

NSE-NIFTY OUTLOOK

- NSE-NIFTY begun week on a flat to positive note. Since last three trading sessions, the index stuck between its 20-day and 50-day EMA. Overall market breadth remained negative during the day. Its key technical indicators on the near-term timeframe chart reversed from their oversold zone. As mentioned earlier, our bearish view will remain intact, but near-term rebound cannot be ruled out before the index resumes its southward journey. On the higher side, its psychological hurdle point-12,000 level will cap the up-move.

- As for the day, support is placed at around 11,633 and then at 11,537 levels, while resistance is observed at 11,878 and then at 12,026 levels.

Derivatives Snapshot

- NIFTY50 traded volatile and bounced from the support levels of 11,560 and closed flat to positive for the day. Nifty closed up by 27 points at 11,669 levels. Among the nifty stocks 23 advanced and 26 declined during the day.

- Among sectors it was a mixed bag with Bank Nifty and Realty to gain by 4% average while Auto, FMCG and Pharma declined by 0.8% average for the day.

- Broader market indices remained positive with NIFTY 100,200 and 500 to close up by 0.3% average while midcap indices and small cap indices declined by 1% for the day.

- Nifty Nov futures end with 12 points premium at 11,681 mark while on other hand, Bank Nifty Nov futures ended with the premium of 8 points at 24,931 mark.

- Nifty has closed flat over the past 3 days while Bank Nifty outperformed. The multiple support levels of 11540 as mentioned withhold the supports and witnessed a bounce. On the higher side 11,900 will act as strong resistance from current levels. Sectoral Activity: Amongst sectoral index, Banks and Realty remained in focus with positive momentum. Stock Activity: Axis Bank and DLF have witnessed long build up in today's trade.

Source : Equity Bulls

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