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.
Nifty
futures opened at 14689.70 points against the previous close of 14889.40,
opening at a low of 14282.00 points. Nifty Future closed with an average
movement of 407.70 points and a decline of around 524.90 points and around 14364.50
points..!!!
On the NSE,
the Midcap 100 Index decline 5.68% and the Small Cap 100 Index decline 5.55%.
Speaking of various sectoral indices, the NSE saw heavy selling in PSU Bank,
media, realty, metal, and auto stocks, while all other sectoral indices also
closed lower.
India on
Monday reported another record daily surge in corona virus cases, with the
total now eclipsing Brazil’s tally. The state of Maharashtra, home to Mumbai,
is considering a lockdown and could take a final decision this week, a senior
government official said.
Also,
experts point out that on the fiscal front, the government and RBI may not have
many shots to fire as of now as both have already done a lot to keep the
economy up and running. In simple words, the government may not be able to
announce a prolonged period of lockdown.
Most market
experts say that one should not be worried about the current market sell-off
and instead use it as an opportunity to make a portfolio full of quality stocks
which will give a return in the medium to long term as the Indian economy has
just started showing significant signs of improvement.
The fresh
selloff has brought many stocks lower and they may rise after the March quarter
earnings, which is expected to be healthy. Besides, the government would not
want the pace of economic recovery to meet with hiccups when recovery is at a
nascent stage.
The rising
cases of Covid -19 and a fear of probable lockdown in some parts of the country
led to a sell-off in our markets which resulted in a huge under performance
compared to the global peers. It seems to be like vaccination is the only hope
for India as of now we have given vaccination first dose to 6.44% of total
population and we expect Indian will require 45 days to reach 15% vaccination
of total population.
Technically, the important key resistances are placed at 14474 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 14474 – 14505 levels. Immediate support is placed at 14272 – 14202 levels.
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