Dear
Trader…
After a break in the
index-based rally last weekend and on positive signals from global markets and
Asian markets, Indian equity
markets maintained their upward momentum with the expected
strength.
Domestic markets mirrored positive cues from its global peers,
tracking gains from the US market as bond yields pulled back easing concerns
about rising inflation. Sensex added 254.03 points to close at 51,279.51. Its
broader peer NSE Nifty advanced 76.40 points to 15,174.80.
European markets opened lower as caution over sharply rising
bond yields, and concerns over sharply rising inflation, outweighs increasing
optimism over the vaccine rollout program, and the path to an economic
reopening.
The Indian stock market is trading at a high valuation. In
addition currently, stocks based bullish trend on the local economy. The
infrastructure, steel, aluminum, metals, cyclic and cement sectors have good
valuations and are seeing huge growth in their profits.
The individual stocks are still providing better trading
opportunities but going ahead, trader needs to be very selective in stock
picking as well. Volumes on the NSE were much below recent averages hinting at
limited institutional participation. Among sectors, Metals, IT, Pharma, Auto
gained the most while PSU Bank fell marginally.
The market may show a decline in the coming days, but apart from
that the market structure is made up of bulls. The market is booming due to the
success of vaccines and the steady influx of FIIs, but there have been
corrections in the bullish phase in the past as well. This time too, along with
the positive factors, the bullish trade in stocks is likely to ease, so caution
will be required.
Technically, we feel that the Nifty needs to cross the level of 15202 points, and the trend continues to be profit booking on every rise and the next range to be watched out for is around 15088 to 15272 points and this can be achieved in the short term. The immediate support for the Nifty future is placed around 15088 and 15008 points.
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