From The Economic Times · Milan Vaishnav CMT MSTA · · 1m 50s
Nifty Bulls Return After US Election Rally
Nifty rebounds 8.58% after US election shock, but 25,000-25,200 resistance looms.
In brief
Nifty rebounds 8.58% after US election shock, but 25,000-25,200 resistance looms. Indian stock market rallies 8.58% following US election results but faces technical resistance at 25,000-25,200. Originally reported by The Economic Times.
Market Rally After US Elections
Indian equity markets staged a spectacular rally ending with substantial gains as investors reacted positively to US midterm election results.
Nifty Weekly Performance
The Nifty witnessed an exceptionally strong directional move opening the week on a firm footing and extending gains as the index traded in a remarkably wide range of 1823.30 points.
Volatility Surge
India VIX surged 14.18% to 17.47 as the markets witnessed a significant improvement in their technical structure following the sharp rebound from the important long-term support zone near 22700-22800.
Weekly Gain
The headline index ended the week with a massive gain of 1977.25 points plus eight point five eight percent.
Technical Rebound
The Nifty has reclaimed its 50-week and 100-week moving averages currently placed at 24280 and 24317 respectively and closed near the upper bollinger band.
Resistance Zone
The Nifty is now approaching a broader resistance zone around 25000-25200 where a sustained move above this area would be required to extend the rally towards previous major highs.
Coming Week Outlook
The coming week is likely to see a stable start with the customary one-hour muhurat trading session scheduled for sunday november 8 and a trading holiday on tuesday november 10.
Resistance Levels
Levels of 25050 and 25300 are likely to act as immediate resistance points while supports are expected at 24730 and 24500.
Technical Indicators
The weekly RSI stands at 60.96 marking a fresh 14-period high but remains neutral without showing divergence against price while the weekly MACD shows a positive crossover staying above its signal line.
In short
Indian stock market rallies 8.58% following US election results but faces technical resistance at 25,000-25,200.
