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.
Nifty
futures opened at 14871.05 points against the previous close of 14913.55, opening
at a low of 14720.70 points. Nifty Future closed with an average movement of 155.30
points and a decline of around 151.05 points and around 14762.50 points..!!!
On
the NSE, the Midcap 100 Index was up 0.35% and the Small Cap 100 Index was up 0.37%.
Speaking of various sectoral indices, NSE Metal, Pharma, PSU bank and Realty
are showing growth, while all other sectoral indices are closing lower. A total
of 215 stocks traded on the NSE.
Indian shares closed sharply lower for a second straight session
on Thursday, led by losses in energy and technology companies, due to renewed
concerns over the impact of surging corona virus cases on economic growth.
The rise in bond yields raises the
cost of capital for companies, which, in turn, affects their stock valuations.
Hence, stock markets across the world are seeing some impact of increasing bond
yields. If central banks allow the yields to go up, it indicates that the
liquidity support that has been offered may also go down. Whenever the bond
yield increases, investors including FII, prefer to withdraw from equities and
look at bonds.
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.
The lockdown on the economic front
has affected market sentiment. So in the coming days, the economy and the
Indian stock market may see a major upheaval.
Technically, the important key resistances are placed at 14762 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 14888 – 14970 levels. Immediate support is placed at 14707 – 14660 levels.
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