Indian Markets Expected to Remain Strong Next Week

Nifty managed to close the week with gains at 10680 up by 105 Points from previous week's close. Current Week saw a total gain of 230 Points from Lows of 10460. We had three positive sessions in last five days.

Market has been inching up towards higher levels trying to touch the 50 Day and 200 Day Moving average coinciding at 10774 and 10767 levels. Upcoming week shall be very crucial as bulls must close Nifty above these widely tracked Moving averages. We will have to see if the current bounce back from lows of 10030 levels is a retest of Previous swing top at 10700 Levels or another opportunity for bears to gain control. Historically, in last 10 years, November closing has been negative 7 out of 10 times.

Bank Nifty has given a breakout from a seven week consolidation range led by strong gains in ICICI, Kotak and HDFC Bank. Bank Nifty closed at 26256 up 650 Points from previous close and +860 Points from weekly Low of 25384.

On last day of the week, Market breadth was negative with 787 advances and 876 Declines on the NSE. Options Data Suggest that markets have steam left for upside. we have seen Long Built up in calls at 10800 to 11000 Strike prices. Short built up is seen on Put Side at most of the Strikes. High OI Concentration for Calls is at 10800 and 11000 Levels whereas 10500 and 10200 Levels for Puts. Support for Nifty comes at 10550/10500 Levels and Resistance comes at 10850/10900 Levels.

Indian Economy must thank the heavens as the Oil Markets have reversed from highs and turned bearish in six weeks. Brent Crude made a four year high at $86.74 and is currently trading down 20% at $67.59. The Recent fall in Oil Prices will provide much needed relief to the Markets and the Government. Indian Markets are believed to be pricing in the Fall.

Week Ahead, we will have Bank Loan growth Data and Forex Reserves data lined up for release.

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