Trade Setup for November 13: Nifty sentiment stays positive after three straight day of gains

The Nifty index extended its uptrend for the third straight session, staying firm after a gap-up opening on Wednesday.

After opening with an upside gap of 139 points, Nifty moved higher through the early and mid-session before consolidating toward the end. The index ultimately closed near the day's high, ending 180 points higher.

Among the Nifty constituents, Asian Paints, Adani Enterprises, and Tech Mahindra were the top performers, while Tata Motors Passenger Vehicles, Tata Steel, and Shriram Finance witnessed profit-taking and emerged as the major laggards.

Barring the Nifty Metal and Realty indices, all other sectoral indices closed in the green. IT, Auto, and Pharma outperformed the broader basket.

Broader markets moved in tandem with the benchmarks, with both the Nifty Midcap 100 and Smallcap 100 indices advancing 0.8%.

The rally was driven by optimism over a potential trade deal with the US, while exit polls suggesting an NDA win in Bihar further lifted investor sentiment.

Investors now await key macroeconomic data due tomorrow, including UK GDP, US CPI, and Initial Jobless Claims, along with quarterly results from Eicher Motors, Hero MotoCorp, Muthoot Finance, LG Electronics, and Samvardhana Motherson.

Market sentiment was also buoyed by expectations around the weekly derivatives expiry and the successful listing of Groww, which saw strong debut gains.

Siddhartha Khemka of Motilal Oswal expects the markets to maintain their positive bias, supported by the ongoing earnings season, constructive progress on the India-US trade deal, and improving global cues.

According to Nagaraj Shetti of HDFC Securities, the short-term trend for Nifty remains positive, with the next upside targets at 26,100-26,200, and immediate support near 25,700.

Rupak De of LKP Securities said the sentiment could remain positive in the near term, with the index likely to test 26,000, while support lies at 25,700.

Nandish Shah, also of HDFC Securities, said that the index now faces resistance near 26,100, and a breakout above this level could trigger fresh record highs beyond 26,277.