Dear
Trader…
On the third day of the week, Indian equity benchmarks continued to
show a sluggish trend with Sensex and Nifty trading below their psychological
levels of 51404 and 15202, respectively.
Traders failed to get any sense of relief
with Agriculture Minister Narendra Singh Tomar’s statement that the government
has been pursuing the target of doubling farmers’ income by 2022 and several
interventions taken are showing a ‘positive impact’. He also said the
government has adopted several developmental programmes, schemes, reforms and
policies that focus on higher incomes for the farmers. On the global front,
Asian markets were trading mostly higher amid upbeat earnings, hopes of a large
fiscal stimulus programme in the United States and progress in vaccinations
fanned optimism about a global recovery from the coronavirus pandemic. Traders
were seen in selling position for telecom, capital goods and energy stocks,
while buying was witnessed in realty, basic materials and metal stocks.
The positive impact of a number of provisions in the
budget on getting the country’s economy back on track and improving corporate
India’s performance continued as foreign funds continued to buy stocks on a
daily basis. Is. With the world coming out of the Corona era, stocks that have
been showing big gains for a long time now are seeing a decline in profit
booking by booking profits.
Friends, the Indian stock market continues to move
forward. The Sensex and Nifty futures have hit historic highs in the wake of
massive FII buying. The success of the vaccination program has also helped keep
the market afloat, but it has also seen a correction in the past. This time
too, along with the positive factors, the rise in stocks is likely to ease the
bullish trade, so the rise in caution will be necessary.
On the global front, the US and China will release their
January inflation figures for February 12, 2021, and locally, the Indian stock
market will keep an eye on India’s industrial production growth figures for
December on the same day, as well as the January inflation figures. Along with
this, the Indian stock market will keep an eye on the continued investment flow
of foreign portfolio investors, the development of vaccines in the corona case,
as well as the fluctuations in the value of the rupee against the US dollar on the
international front and global market movements.
Friends, buy on declines would be the prudent strategy as
possibility of profit booking at higher levels cannot be ruled out which would
offer incremental buying opportunity to ride next leg of up move. Meanwhile,
Technically, we feel that the Nifty needs to cross the level of 15202 points, and the trend continues to be profit booking on every rise and the next range to be watched out for is around 14808 to 15272 points and this can be achieved in the short term. The immediate support for the Nifty future are placed around 14808 points.
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