Key factors that are likely to impact the Nifty and Bank Nifty futures ahead of 26 Nov F&O expiry

 

Nifty and Bank Nifty futures trading strategy ahead of 26 Nov expiry: Indian markets closed marginally higher on the week ended 20 November. The truncated week closed higher mainly due to vaccine news and positive global market sentiments. Next week market likely to remain volatile due to the monthly F&O expiry. 

The worries about the surge in coronavirus cases worldwide and imposing restrictions and fresh lockdown could create negative market sentiments in the coming week. The key factors that are likely to impact the market next were are

 

Global market cues

 

Global markets cues were positive on the initial days last week. The global market sentiments were positive due to the Coronavirus vaccine news and it helped to lift the domestic market sentiments. The traders were concerns about the surging coronavirus cases worldwide and the market saw some correction in the end.

In the coming week PMI data, coronavirus news, vaccine news, FOMC minutes, and US stimulus news will derive the global market.

 

Important Global Macro Data Next Week
23 Nov	Service PMI	GB, USA
	Manufacturing PMI	GB, USA
25 Nov	GDP Growth rate Estimate	USA
26 Nov	Tokyo CPI	Japan
	Industrial Profit	China
	FOMC meeting minutes	USA

Nifty, Bank Nifty futures trading strategy for  26 Nov expiry 

 

 

Nifty futures prediction for next week

Primary Trend of Nifty futures next week: Positive

Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 13100 whereas All Down Moves Initiates Short Covering (Buy) @ 12700

If Nifty share price in futures Moves Above 12895 and sustain. Then you should Buy with 1st Target of 12927 during the day or week with a Stop Loss of 12795 FOR the Target of 12927- 12964- 13002- 13085

Suppose Nifty share price in futures Moves Below 12795 and sustain. Then you should Sell with 1st Target of 12760 during the day or week with a Stop Loss of 12895. FOR the Target of 12760- 12718- 12670 -12585

 

Bank Nifty futures trading strategy for next week

Primary Trend of Bank Nifty future for next week: Positive

Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 30300, whereas All Down Moves Initiates Short Covering (Buy) @ 28500

If Bank Nifty share price in the futures Moves Above 29300 and sustain. Then you should Buy with the 1st Target of 29520 during the day with a Stop Loss of  29035. FOR the Target of 29520 – 29710- 29890- 30318

If Bank Nifty shares price in the future Moves Below 29035 and sustained. Then you should Sell with the 1st Target of 28860 during the day with a Stop Loss of 24670. FOR the Target of 28860- 28670- 28430 – 28190

 

Coronavirus risk

 

India tally near 91 Lakh coronavirus cases so far with around 46,000 new cases on a daily basis. The recovery rate is now almost 94%. Though the coronavirus infection is declining in India, a fresh spike has been reported in some parts of India during the week. Additional restrictions and fresh lockdown may impose in some places like Delhi, Gujarat, and Rajasthan. 

On the global front, last week market gained on the initial days due to the effectiveness of the Morderna Inc vaccine. Whereas on the last two days of the week traders were concern about the surge in fresh coronavirus cases in various parts of the world.

On the vaccine front, Pfizer Inc has applied to the US Health regulator to use the vaccine for emergency use. Morderna Inc may also seek such approval from the US Food and Drug Administration. Coronavirus news will impact the most to drive the Global as well as the Indian markets next week.

 

RBI’s new changes to raise the promoter’s stake

 

The internal working group (IWG) set up by the RBI has recommended several changes in the banking industry to transform the industry in a big way. The Banking and Finance stocks could be in focus in the next week.

The IWG of RBI has proposed to raise the cap on promoter’s stake in private banks from the current 15% to 26% in 15 years period. The Panel also suggested that the established NBFC having well run for 10 years can be converted into banks. Three years of track record would be enough for payment banks to be converted into small finance bank, minimum capital for licensing should be raised.

 

FII & DIIs investment

 

So far in the month of November FIIs pumped Rs 46250 crore in the cash segment. Indian stock markets gained with the support of FIIs’ continuous buying in the equity market. Last week FIIs bought Rs 13018.67 in the cash market whereas DIIs sold Rs 12342.61 crore.

As long as FIIs are buyers in the market, the Indian stock market trend will remain positive. Traders need to track the FIIs position on a daily basis.

 

You may also like to read, Nifty and Sensex weekly updates ( 17-20) November 2020

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Happy Investing!!

Editor’s Desk

 

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