Is it a BREAKOUT or FAKEOUT??? 

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What happened yesterday?             

Indian Market

Indian shares advanced on Wednesday, posting their biggest single-day jump in over six weeks, after Donald Trump claimed victory in the U.S. presidential election, which analysts termed a near-term positive for domestic equities. The NSE Nifty 50 NIFTY was up 1.12% at 24,484.05, while the BSE Sensex SENSEX added 1.13% to 80,378.13.

Trump claimed victory in the presidential race after projections that he had defeated Kamala Harris, which would cap a political comeback four years after he left the White House. The official results are still awaited.

"Trump's potential victory will trigger celebrations in the near-term for Indian markets," said Neeraj Dewan, equity analyst and former director at Quantum Securities.

"Some of his stated policies like reducing corporate tax rates will help sectors like IT, while focus on China +1 will benefit several sectors and encourage some businesses to shift to India from China," Dewan said.

While the election results could trigger a rally for a few sessions, analysts say a clear directionality for domestic equities will depend on the policy framework of the next U.S. government and commentary from the Federal Reserve.

The central bank is expected to cut interest rates by 25 basis points on Thursday.

• All 13 major sectors gained on the day. The IT index CNXIT was the top sectoral winner, rising about 4% to post its best session in about four months.

• IT stocks also rose after data showed U.S. services sector activity accelerated unexpectedly in October. IT firms earn a significant share of their revenue from the country.

• Among stocks, Titan TITAN fell 1.7% after posting a drop in second-quarter profit as the gold import tax cut drove inventory losses.

• Dr. Reddy's Laboratories DRREDDY rose 2.4% after brokerages termed higher volume growth in the September quarter, new launches and a diversified product mix as positives.

• Oil India OIL jumped 6% after the oil explorer reported a six-fold rise in second-quarter profit.

• The broader, more domestically focused small- CNXSMALLCAP and mid-caps CNXMIDCAP rose about 2.2% each.

FII net sold for  -4,445.59   crores

DII net bought for  +4,889.33    crores

US Market

US benchmark equity indexes closed at all-time highs Wednesday while Treasury yields surged after Donald Trump won the presidential election.

The Dow Jones Industrial Average jumped 3.6% to 43,729.9, and the Nasdaq Composite advanced 3% to 18,983.5. The S&P 500 rose 2.5% to 5,929. Among sectors, financials saw the biggest gain, up 6.2%, while real estate posted the steepest decline of 2.6%.

• Trump, the Republican nominee, defeated Kamala Harris, vice president and the Democratic candidate, in Tuesday's vote. His return to the White House will have investors watching the impact of potential new tariffs, the labor market effects of immigration cuts and benefits to top technology firms, analysts said.

• "US large-cap equities could benefit from a combination of deregulation and potentially additional tax cuts," Wells Fargo Investment Institute said. "Smaller, domestic-oriented companies should find an advantage from tariffs on imports."

The US 10-year yield surged 14.5 basis points to 4.43%, while the two-year rate gained 6.7 basis points to 4.27%.

• The Federal Reserve kicked off its two-day monetary policy meeting. Markets widely expect policymakers to reduce interest rates by 25 basis points Thursday, according to the CME FedWatch tool.

• "Following an outsized (50-basis-point) cut in September, the Fed is widely expected to continue along a path to easier money policy albeit at a reduced pace with a more tempered pace of (25-basis-point) this week," Stifel said in a Wednesday note to clients.

• In company news, Tesla TSLA shares jumped nearly 15%, the top performer on the Nasdaq and among the best on the S&P 500, as presidential election results fueled bets that the electric vehicle maker stands to benefit from Trump's victory.

• Shares of banking giants Goldman Sachs GS and JPMorgan Chase JPM jumped 13% and 12%, respectively, the top gainers on the Dow.

• Super Micro Computer SMCI was the worst performer on the S&P 500 and the Nasdaq, down 18%. Late Tuesday, the artificial intelligence server maker provided interim financial information for its fiscal first quarter while saying that a committee looking into accounting firm Ernst & Young's concerns about governance found no evidence of fraud or misconduct.

• International Flavors & Fragrances IFF shares slumped 12% Wednesday, among the steepest decliners on the S&P 500. Late Tuesday, the company reported third-quarter adjusted earnings that fell short of Wall Street's estimates.

• West Texas Intermediate crude oil dropped 0.3% to $71.81 a barrel Wednesday. The incoming Trump administration could tighten US oil sanctions against Iran, analysts said.

• Commercial crude stockpiles in the US posted a surprise build last week, government data showed.

• In economic news, mortgage applications in the US declined for the sixth consecutive week as rates across 30-year fixed mortgage types increased, the Mortgage Bankers Association said.

• Gold dropped 2.9% to $2,669.40 per troy ounce, while silver declined 4.5% to $31.29 per ounce.

What to expect today?   

• Asian market trading mixed where Japan in  -0.40% and Hong Kong +0.82%
  US Futures trading  at +0.12%

• GIFT NIFTY trading  at -0.30%, down by -74.50 points

• All the factors indicating a flat opening in the market.

NIFTY Technicals

In NIFTY nearest high amount of call OI at 25,000 and put OI at 24,000, PCR at 0.85. NIFTY FUT indicating LONG BUILD UP.

As per our plan NIFTY(FUT) made a close above 24,326.35 and maintained the gap till 24,172.20. NIFTY FUT can grab a trendline liquidity which formed yesterday which is till a context FVG and the reversal can target 25,000.

INDIA VIX falls to 14.8675

 All the best for the day.