K. ARAVIND
The stock market made good progress last week. The Nifty is up about 500 points in a week. Shares of several companies rose on the back of better sales in the run-up to Diwali. Consumer oriented stocks in particular gained ground.
Banking stocks led the rise this week. Bank Nifty rose to around 2,000 points this week. The main reason for the rise in the market is the rise in banking stocks.
The availability of funds is the main factor driving the market. Different sectors are involved in each stage of the stock market movement. No progress was made in all areas at the same time.
The real economy is likely to recover, while banking and financial services stocks are likely to remain strong. Technology stocks in the US stock market have also started to fall and banking and finance stocks have begun to show interest. The Indian market is likely to continue this trend.
The current trend is driven by banking stocks. Shares of automobile and Reliance Industries led the gains towards the end of last week.
The Nifty has a resistance at 13,000 points. If this level is overcome, the next resistance is at 13,600 points. In case of market correction, it is supported at 12,400 and 12,000.
Correction is always possible. It’s also necessary to keep the market booming. Therefore, high level of profit taking can occur in the market. It does not have to be such as to affect the index as a whole. Profits are likely to be made only in certain areas where there has been a strong jump.
Investors are eagerly awaiting the Diwali trading on November 14. Investors are optimistic that buying stocks on a trading day will be a good idea.
