Dear
Trader…
Indian equities witnessed high volatility and
the bulls have ruled positive market for the session on Thursday with strong
global cues helped the bulls to put up a smart show but a mixed trend was seen
in the broader market space, signaling caution ahead.
In our last note, we
had only mentioned about the possibility of a selloff at higher levels in the
Market. While trading precisely on the expected lines, Nifty saw a strong
selloff at 15202, higher levels due
to profit booking amid growing concerns over a spike in corona virus
infections.
We observed profit booking in
individual stocks, the profit booking trend was seen in so many sectors, which
weighed down heavily on the market and thus market had a decent decline during
the trading. But similar to recent bullish trend once again played out well in
the market, which helped the market erase its losses completely. Overall it was
a day with some decent rollercoaster move and fortunately due to sheer
outperformance from Reliance, markets are back to safe terrain.
Market maintained their
upward momentum after growth oriented budget, this raises the possibility of a bullish technical
count, especially if it does not correct sharply on the succeeding day.
On the global front, U.S. stocks closed mixed, though the Dow eked out a new all-time
high, after Federal Reserve Chairman Jerome Powell said he remained focused on
getting Americans back to work and downplayed the risk of runaway inflation. A
report on U.S. inflation also showed investors have little to worry about, for
now, giving a brief boost to stocks in early trade.
The U.S. consumer price index rose 0.3% in January as
expected, after climbing 0.4% a month earlier. Stocks were flat in early
trading in Asia on Thursday as investors kept tapping the brakes on runs in
asset prices after taking in tepid U.S. inflation data and comments from the
Federal Reserve chief affirming the outlook for a slow recovery.
We expect some correction after each
rally. We advise investors to use correction in the market as an opportunity to
buy, on the other hand, traders should
maintain extra caution due to the expected rise in volatility ahead.
Technically, the trend deciding is 15202. If NIFTY future trades above this level then we may witness a further rally up to 15272 – 15303 levels. However, if NIFTY future trades below 15088 levels then we may see some profit booking initiating in the market, which may correct up to 15008 – 14970 levels.
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