After ending the last three trading sessions on a positive note, Indian stock indices closed slightly in the red on November 7 in a volatile session. At the close of trading, the Sensex was down 16 points at 64942 and the Nifty was down 5 points at 19406. Among other sectors, Pharma was the top performer, ending the day up 1.32% while profit booking pressures Real estate segment moved downwards. The market experienced some resistance at higher levels as caution prevails due to the start of key state elections and further negative global signals due to a sharper-than-expected decline in Chinese exports, pointing to a continued slowdown in global trade. Despite the extension of supply cuts by Saudi Arabia and Russia, crude oil prices moderated, which is positive for India given the geopolitical tensions. This, along with weakening US bond yields and the ongoing positive earnings season, will support long-term returns. On the daily chart, the index has formed an inside bar candlestick pattern, which generally represents a period of consolidation or indecision in the markets. A convincing close above 19450 opens the doors to 19500 while a downtrend is protected at 19400. BankNifty has recorded a convincing close above the critical hurdle of 43600 and its 21DMA, indicating a continuation of the current uptrend and is likely to move higher towards 44200 while a level of 43200 will act as strong support.
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