Nifty, Sensex may open muted after three sessions of gains; key levels to watch on November 13

Markets may take a breather after strong run.

Domestic indices are likely to see a tepid start on the bourses for the November 13 session, potentially snapping three straight days of gains as investors turn cautious.

At 7.20 am, the GIFT Nifty index was trading at 25,953, down 4 points or 0.01 percent.

India's retail inflation fell to a record low of 0.25 percent in October, marking the lowest reading since the current series began in 2013. Experts were hopeful of another rate cut in the benchmark lending rate from the Reserve Bank of India in its December meeting.

Investor sentiment is further buoyed by optimism surrounding a potential India–U.S. trade agreement and growing expectations of the U.S. Federal Reserve rate cuts amid signs of softening economic activity. Additionally, robust domestic growth prospects, the resolution of the U.S. government shutdown, and declining crude oil prices continue to provide a favorable backdrop for risk assets.

Overnight, it was another session of mixed movement on Wall Street, with the Dow Jones extending its outperformance while the tech-heavy S&P 500 and Nasdaq remained subdued.
Both indices recovered from intraday lows, but the S&P 500 closed nearly unchanged, and the Nasdaq slipped below the flat line for the second straight day. The tech index has now fallen in four of the last five sessions.

Key levels to watch in trade on November 13

From a technical perspective, Nifty is comfortably trading above its 10- and 20-day exponential moving averages (DEMA), turning previous resistance zones into fresh support levels. "Holding above the gap-support range of 25,700–25,780 will continue to strengthen short-term sentiment and support the ongoing bullish phase. As long as the index sustains above the 25,700–25,650 zone, traders are expected to adopt a buy-on-dips strategy," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

On the upside, he added that immediate resistance is placed near 25,950. A convincing move beyond this level could trigger fresh buying and extend the rally further. Conversely, a break below 25,650, in wake of negative surprise in Bihar Polls outcome would signal weakness and may invite renewed caution among traders.

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