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.
The Nifty futures opened at 14868.25 points against the previous
close of 14771.30, opening at a low of 14506.50 points. Nifty Future closed
with an average movement of 393.75 points and a decline of around 167.30 points
and around 14604.00 points..!!!
On the NSE, the Midcap 100 Index was down 1.37% and the Small
100 Cap Index was down 1.28%. Speaking of various sectoral indices, the NSE saw
gains only in FMCG, and metal stocks, while all other sectoral indices closed
lower. A total of 215 stocks traded on the NSE.
The Indian stock market started trading positively and initially
saw a rebound with a rally in the global stock market.
In the US, a modest drop in bond yields has healed the storm of
hedge funds and seen a resurgence of foreign investment in emerging markets.
Funds rallied at the end of an index-based slump today amid
expectations that economic growth will pick up again in the short term as the
vaccination program continues to move faster despite a worrying rise in the
transition to corona and consequent tightening of controls in various states of
the country.
The market has already witnessed a sharp run-up and valuations
appear to be quite stretched at the current level, profit-booking at these
levels cannot be ruled out and therefore traders should be cautious at these
levels.
Markets initially settled marginally, the bias was on the
positive side but profits at higher levels streamlined all the gains as the day
progressed.
Technically, the important key resistances of Nifty future are placed at 14606 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 14676 – 14707 levels. Immediate support is placed at 14505 – 14474 levels.
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