Dear
Trader…
In anticipation of growth with more stimulus in the US,
the Indian stock market has been witnessing a steady rally after the positive
mood in global markets and the release of the central budget at the local
level. Along with this, the Indian stock market continued to rise on today
after seeing a series of rebounds in the central budget and the repo rate announcement
at the RBI’s monetary policy committee meeting.
The BSE Sensex traded a new high of 51,523 points and the
Nifty futures hit a record high of 15,167 points today as the Reserve Bank of
India (RBI) kept interest rates unchanged and announced measures for liquidity
required for growth.
The BSE Sensex and Nifty futures have surged an estimated
10% in the last six trading sessions, which continued non-stop after the
announcement of the Union Budget. At a meeting of the Reserve Bank’s MPC last
weekend, RBI Governor Shaktikant Das decided to keep the repo rate unchanged at
4%, assuring the government that it would manage the government’s record
borrowing. In addition, the accommodative policy stance remained unchanged and
the record-breaking move on new fund purchases remained intact for the sixth
day in a row and the Bank Nifty, including the Sensex and Nifty Futures,
remained at a record high and the market breadth remained positive.
Friends, this was the first meeting of the RBI’s Monetary
Policy Committee after the Union Budget, and also this was the fourth
consecutive meeting in which interest rates were kept unchanged. The monetary
policy meeting by the Reserve Bank of India had expressed optimism of 10.5%
economic growth in the country with double digits for the financial year
2021-22 starting April 1. At the same time, the RBI hopes that the economy,
which has been crippled by the coroda epidemic, will accelerate in the next one
year. At the same time, retail inflation will fall to 4.3 per cent from 5.2 per
cent. On the economic front in the coming days, the Indian stock market will
now keep an eye on India’s industrial production growth figures for December
for 12th February 2021 and inflation for January on the same day.
We expect the market to continue with its
bull run to hit fresh high, although 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.
The trend deciding is 15202. If NIFTY future trades above this level then we may witness a further rally up to 15230 – 15272 levels. However, if NIFTY future trades below 15130 levels then we may see some profit booking initiating in the market, which may correct up to 15088 – 15008 levels.
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