Is Nifty in a strong up-trend?

The benchmark indices, on Thursday, November 26, closed in green towards the end of November F&O expiry.  Sensex jumps nearly 700 in intraday and ends over 431 points or 0.98 per cent higher at 44,259.74  while nifty ends over 12,950 level at 12,987. 

Although the trading session today was choppy, however, the India Volatility Index dropped by 12 per cent. All Sectoral Indices also joined the positive rally and ended in the green, however, this rally was led by Nifty Metal which gained 4 per cent towards the market closing.

Rally in Nifty heavyweights such as Tata Steel (5.30 per cent), Bajaj Finance (3.46 per cent), HDFC drove Market’s uptrend. ONGC (0.68 per cent), Maruti (0.63 per cent) & Tech Mahindra (0.45 per cent) are among the index’s top losers. 

About 1,726 shares advanced, 986 shares declined & 179 shares remained unchanged. The BSE sectoral indices except Oil & Gas ended in the green.

Author’s View: Nifty tested support at 12,800 and bounced from there. This has happened a couple of times in the recent past as well. The underlying trend remains intact as long as this support is decisively broken and every dip can be utilized to initiate a fresh long position. On the upside, Nifty might face some resistance at 13,000-13,050 level. We are bullish on market and Nifty seems to be in a strong up-trend.