K ARAVIND
The stock market has been volatile over the past week. In general, the market saw selling pressure. Uncertainty over the outcome of next week’s US presidential election was also reflected in the stock market. Attempts to make a profit ahead of the election led to sales pressure.Generally, the market traded lower last week. At the same time, severe fluctuations caused strong shifts in both directions on the same day.
The increase in the number of patients due to covid-19 in Europe was also a negative factor. France has re-imposed a lockdown to prevent a second outbreak. Other countries have tightened restrictions.
The outcome of next week’s U.S. presidential election will be crucial to the pace of the stock market. Depending on who wins, the market is likely to move strongly up or down. If Donald Trump wins, the market is expected to jump. If Biden wins, the market is expected to plummet.Whichever way the market moves, it will be strong.
The Nifty has support at 11550 and resistance at 11800. However, these levels are likely to be surpassed if there is a strong fluctuation in the market. A large range deviation from the current level can be expected. The possibility of the market moving to 10800 if it falls and 12200 if it rises cannot be ruled out.The market should be approached next week in anticipation of such a drastic change.
Even if the market falls, there is still a possibility of an uptick. This is because liquidity controls the market. Therefore, if there is a strong decline, it should be used as an opportunity to buy. Bihar elections are an important event in India. However the results of Bihar election is unlikely to have a significant impact on the market.
The increase in the number of cases of COVID-19 disease in India and the festive season are positive factors. But the outcome of the US election will ultimately determine the course of the market
