Dear Trader…
As expected, the Indian stock market bullish run stopped at a
red mark due to unprofitable selling from higher levels, the Nifty couldn’t
sustain in the higher territory and faced sharp selling pressure there and it
aggravated as the day progressed. while a fresh surge in COVID-19 cases also weighed on.
Nifty
futures opened at 14733.75 points against the previous close of 14832.90,
opening at a low of 14535.00 points. Nifty Future closed with an average
movement of 227.70 points and a decline of around 264.80 points and around
14568.10 points..!!!
On
the NSE, the Midcap 100 Index was down 1.99% and the Small 100 Cap Index was
down 2.11%. Speaking of various sectoral indices, the NSE saw gains only in
pharma stocks, while all other sectoral indices closed lower. A total of 215
stocks traded on the NSE.
The global market cues are not very positive. COVID-19 cases are
going up globally and that is a major concern. Until you see some cool off
sustainably in commodity prices and bond yields, equity markets are unlikely to
go up in a hurry.”
Asian shares hit a two-week low on Wednesday, oil weakened
further and the dollar neared four-month highs as coronavirus lockdowns in
Europe and potential U.S. tax hikes hit risk appetite, leading to a flight to
safety.
India reported 275 new COVID-19 deaths on Wednesday, the most
this year, as a second surge in cases fills up hospital beds in big states such
as Maharashtra.
The market has already witnessed a sharp run-up and valuations
appear to be quite stretched at the current level, profit-booking at these
levels cannot be ruled out and therefore traders should be cautious at these
levels.
Markets initially settled marginally, the bias was on the
positive side but profits at higher levels streamlined all the gains as the day
progressed.
Technically, the important key resistances of Nifty future are placed at 14606 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 14636 – 14707 levels. Immediate support is placed at 14505 – 14474 levels.
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