Dear Trader…
Extending yesterday’s gains, the market continued its upward trend and Indian shares closed higher for a third consecutive session on Thursday, boosted by heavyweight Reliance Industries and energy stocks, as investors took cues from higher global risk appetite stemming from dovish signals by the U.S. Federal Reserve.
Nifty opened on a positive note with an upward gap and remained in positive terrain throughout the expiry day of derivative segment. Nifty continued with sustainable up move and The NSE Nifty 50 index ended 0.77% higher at 15,097.35 and the S&P BSE Sensex closed up 0.51% at 51,039.31, ahead of December-quarter gross domestic product data due on Friday. U.S. Federal Reserve Chairman Jerome Powell’s reiteration the Fed wouldn’t adjust policy until the economy is clearly improving sent stock markets across the globe higher, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.5%.
The recent buoyancy on the global front combined with the supportive local cues is helping the index to regain momentum. However, volatility is still high on the stock-specific front. Keeping all in mind, we feel it’s prudent to continue with hedged positions and prefer index majors over the others.
The positive sequence like higher highs and lows continued on the daily chart and Nifty is currently making an attempt to reach higher highs. Previously, the short term downward corrections have resulted in a sustainable upside for many sessions. Hence, having moved up sharply from the higher bottom in the last two sessions, Nifty is expected to show further upside gradually.
The direction of the economy is still dependent on the status of the Corana virus, with the Modi government’s commendable efforts to get the Indian economy back on track, foreign funds – foreign portfolio investors – who see huge growth opportunities in India in the coming days,
Traders are advised to wait and watch for the first 30-45 minutes to understand the trend after a gap up opening then trade accordingly due to it’s a stock specific market trend.
On technical grounds, Nifty is continuing its bullish momentum where 15202 levels are an immediate resistance; above this, we can expect a further rally towards the 15232 – 15272 levels. On the downside, 15088 will immediate support, below this, 15008-14970 will be the next strong support area.
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