Nifty gains lost ground on Friday

Friday, day after the monthly expiry of November contract saw massive buying pulling nifty above 8100 during close. Nifty had started the week opening above 8000 but fell to as low as 7910 during the week testing the earlier low of 7920, expiry day as it generally pans out was extremely volatile with traders getting trapped on both sides of the short and long positions, but today such buying took everybody by surprise causing many short positions to cover thus propelling nifty even higher.
Though it can be still said, Nifty was unable to test its 200 DMA at 8150 due to lack of participation by the banking sector in the upmove still creating doubt over the longevity and stability of the ferocious rally.
Mostly all sectors had participated in the uptrend baring Autos and select Bank stocks.
Stand out sector was IT on weaker rupee/stronger dollar with most stocks gaining over 5%
Pharma stood second to IT in the large pullback.
Week on week, even with such volatile moves nifty managed to close in positive after long time.
It can be perceived that nifty still remains range bound between 8150-7900 levels, but a breakout on either side would cause a big move as nifty is in expansionary phase.


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