Dear
Trader…
Today
was a breathtaking day in the Indian stock market, Indian equity benchmarks erased most of their initial losses
and closed higher with a positive bias on Wednesday amid high volatility and
tepid cues from global markets and rebounded today as
trading hours were extended after
the technical fault in NSE in the afternoon session amid buying in blue chip
stocks from across various sectors by local funds. Buying in Bank, capital
goods, PSU and telecom stocks helped markets to trade higher.
The US markets ended mostly higher on Tuesday after
Federal Reserve Chairman Jerome Powell signaled that the central bank was
nowhere close to pulling back on its support for the pandemic-damaged US
economy even as he voiced expectations for a return to more normal, improved
activity later this year.
On the global front, Asian markets were trading mostly in highly
volatility as investors weighed the possibility that inflation might prompt
central banks to adjust their ultra-low interest rate policies.
Traders will be taking encouragement with a private report
that India’s GDP may turn positive at 1.3 % in the third quarter of 2020-21,
having witnessed contraction in the previous two quarters due to the corona virus
pandemic, as the number of cases is falling and public spending has started
rising. Some support will come as government policy think tank NITI Aayog, said
the government was in the advanced stage of finalizing the Remission of Duties
and Taxes on Exported Products (RoDTEP) rates for all products.
Traders may take note of report that The National Stock
Exchange has announced changes in index maintenance guidelines, criteria and
methodology. From March 31, there will be changes to revision in the index
reconstitution date, stock capping, quarterly rebalancing of shares and
investible weight factors, and calculation of Price to Earnings (P/E) ratio for
indices.
The
short-term technical condition of the market appears like a sideways correction
is in the process while it is subject to further price action evolution, the Indian stock market is likely to be affected by the
growing concern over Corona’s case, our research suggests
it is prudent to wait for a decisive breakout above 15202 and technical factors
to improve before going long in the market.
As such we
retain our cautious stance and advice traders to refrain from building a fresh
buying position until we see further improvement and breakout above 15202
levels, on the other hand,
are offering opportunities on both sides so plan your trades accordingly.
Technically, the important key resistances are placed at 15133 levels, which could offer for the market on the higher side. Sustainability above this zone would signal open the door for a directional up move with immediate resistances seen at 15173 -15202 levels. Immediate support is placed at 14888 – 14808 levels.
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