The stock market has been gaining ground for the past week but has seen some gains within a range. With the US presidential election and festive season over, there were no developments last week to shake up the market. Therefore, the market is moving within a range. The market was not in a position to make a strong move or correction.
At the same time, correction was seen in some sectors. Bank stocks were the main contributors to the market. There were also some gain in auto stocks. At the same time, Reliance Industries came under selling pressure. By the end of the week, there was a sell-off in banking stocks and interest in investing in IT stocks.
Liquidity is the key factor driving the market. The movements in the global stock market were also reflected in the Indian market. It is a bad news that the number of COVID patients is increasing in European countries. At the same time, there are positive reports that the COVID vaccine is in the final stages of testing. International markets are volatile as these two factors persist. This was also reflected in the Indian market to some extent.
The Nifty has a resistance of 13,000 points. If this level is exceeded, the next resistance is at 13,600 points. In case of market correction, it is supported at Rs 12,400 and Rs 12,000.
Bank Nifty is likely to move further within a certain range. Bank Nifty has support at 26,300 and resistance at 32,600. The moratorium on the petition in the Supreme Court has had a small adverse effect on banking stocks. Banking stocks are generally on a positive trend.