We advise traders to maintain a bullish view on the market and suggest focusing more on stock selection and trade management.
After a few weeks of consolidation, the Indian markets have started the week on a strong note led by positive global cues. The Nifty showed strength from the start of Nov 25's trade and ended higher by 1.3 percent at 12,074 levels.
The BSE Midcap and Small cap indices gained 1.2% and 0.8%, respectively, yet under performed the market on November 25. Healthy buying was witnessed across sectors. Notably, telecom, metal and realty were the stars in trade on Nov 25, gaining between two percent and 6.8%, respectively.
Going forward, on the domestic front, PMI manufacturing and Q2 GDP data (scheduled this week) are likely to provide direction to the market. Globally, increasing optimism for a favorable outcome of the US-China trade deal is likely to keep sentiment positive in the short term.
Given that the markets are near an all-time highs, some consolidation may be witnessed. The market may witness volatile swings this week due to scheduled derivatives expiry on November 28.
On the data front, investors will be eyeing core sector data and GDP data on Nov 29. Besides, US-China trade deal will also be closely watched by participants.
The sharp surge seen on Nov 25 the first day of expiry week has negated the possibility of profit taking and indications are now in favour of the up move to continue.
Earlier, it was banking that was single-handedly pushing the benchmark higher, but now auto, FM CG, metal, and pharma are also looking upbeat. We advise traders to maintain a bullish view on the market and suggest focusing more on stock selection and trade management.
