On November 12, the Indian stock market displayed an upward trend, with Nifty 50 opening on a gap-up and Sensex continuing its three-session winning streak. The increase in market sentiment can be attributed to positive global signals, including a potential finalization of a trade deal between India and the U.S., alongside exit polls suggesting a clear victory for the NDA in Bihar. By 9:15 a.m., the Sensex had gained 415.06 points, equating to a rise of 0.49 percent, while Nifty advanced by 121.90 points or 0.47 percent.

Sector-wise, most indices were trading positively, with significant gains observed in financial, IT, and oil & gas sectors. Notably, Nifty Financial Services experienced a rise of 0.7 percent, Nifty IT climbed by 0.82 percent, and Nifty Oil & Gas saw an increase of 0.63 percent. Other sectors, including PSU Bank, Private Bank, Realty, and Consumer Durables, also increased by up to 0.5 percent, while Auto, FMCG, Metal, and Pharma indices remained relatively flat.

The overnight performance of the Dow Jones Industrial Average, which reached a record high, contributed to the buoyant market atmosphere, even though some companies in the tech sector, such as Nvidia, faced sell-offs due to high valuations. Analysts suggest that while the domestic updates offer support for the market, they are insufficient to launch a decisive and extended rally at this time. Investors are keenly awaiting upcoming inflation statistics, which are expected to reflect a downturn due to falling food prices, potentially leading to further easing of monetary policy by the Reserve Bank of India (RBI).

Vinod Nair, the Head of Research at Geojit Investments, anticipated a strong recovery in earnings for the third quarter, driven by various domestic factors. He emphasized the dependence on the successful conclusion of the U.S. trade deal to leverage this rebound.

In its previous session, the Nifty 50 successfully crossed the significant resistance level of 25,500, supported by consistent follow-through buying, which has built a foundation for continued market confidence. Analysts suggest that as long as the Nifty index maintains support between 25,300 and 25,350, short-term traders will likely continue to seek buying opportunities during intraday dips. Immediate resistance points are noted around the 25,800 level; a stable breakout above this could trigger new buying momentum.

Currently, call writers hold sway at higher strike prices, while there is a notable accumulation of put options at lower levels. This indicates a tension between bullish and bearish market forces, leading to a near-term outlook that is neutral to range-bound.