Indian Markets May Scale Towards New Highs Next Week; Nifty May Hit New High Of 12963

For the third straight week, Indian indices ended on a positive note. At the end of the trading session for the week to November 20, 2020, Nifty gained by 0.68 percent to settle at 12859. And in the process, it outperformed all Asian peers but Singapore.

Indian Markets May Scale Towards New Highs Next Week; Nifty May Hit New High Of 12963

Sectors that emerged as the top gainers include IT, FMCG and PSU Bank while laggards were led by media and pharma space. On the NSE volumes were higher than recent averages. Broader markets outperformed indices with modest gains.

Globally, equity markets weighed down the development that the US Treasury will pull a plug on its emergency loan program, and remained largely muted. Also, at the same time Calfornia announced fresh shutdowns to tackle the ravaging coronavirus menace.

Notably for the week Nifty ended with the lowest gains in past three weeks of just around 0.7 percent. And the fact that it could rise again after declining on an overnight or intra-day basis provides hope for a further upside. Since late September Indian stock markets are by and large experiencing continuous uptrend. For the Nifty, 12963 is the resistance, while 12730 remains a support.

Outlook for Nifty for the week to November 27

On the weekly chart, Nifty established a small negative candle with minor lower shadow. This signals a breather type formation at the new highs, following a sharp move of the last several weeks. Signifying, probably lack of enthusiasm on selling front in the markets after sharp upmove or all time high levels. So, uptrend status remains and upside momentum shall be maintained. And Nifty next week may move towards new all time high of 12963.

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