Hot Stocks | Here's why Voltas, LIC Housing Finance and Polycab India are short-term buys
Episode 3008, Nov 03, 2020, 12:30 AM
Nifty has been consolidating for the last three consecutive sessions.
The shadows of the candles formed in the last three sessions have been long with a relatively low body, which indicates that there is a tug of war going on between bulls and bears.
On November 2, Nifty ended almost flat at 11,653 while Bank Nifty surged 4 percent, outperforming Nifty with a huge margin.
Bank Nifty closed at the highest level of the recent upswing and this is also the highest level for Bank Nifty since March 13, 2020.
Looking at the recent move, Nifty seems down but not out. The 8-day EMA is still placed above 21 days EMA, indicating the short-term trend is still on the upside.
Rate sensitive sectors like Banking, Financials and Real Estate have been outperforming in the recent past.
Sectors like IT, Pharma and FMCG have fallen. Nifty Midcap Index has not been showing any directional move for the last two months.
Daily ADX for Nifty is continuously trading below the equilibrium line, which indicates that the market has lost momentum since September 2020.
The Indian market seems to be waiting for the outcome of a big event - the American presidential election.