Dear Trader…
Indian
equity benchmarks ended the Monday’s trade with significant gains with
frontline gages settled above their crucial Sensex 48,300 and Nifty 14,450 levels.
Markets started the session with a gap up opening as investors reacted
optimistically to positive earnings updates and the US announcement that it
would remove bottlenecks in the export of raw materials essential for the
production of vaccines in India.
Traders
also took some support with Union Minister Nitin Gadkari’s statement that the
pandemic has caused a slowdown in India but the country’s inherent resilience
and capability will help it transform into a new India with a faster growth
path fuelled by infrastructure.
Traders
took note of report that the centre has allowed state governments to borrow 75%
of their annual market borrowing limit of 4% of their respective Gross State
Domestic Product (GSDP) in the first nine months of the current fiscal year.
FII and FPIs, on Monday saw a net sold of Rs 1111.89 crore in
the cash segment. A total of Rs 8772.61 crore was sold against a total purchase
of Rs 7660.72 crore. Domestic institutional investors today saw a net purchase
of Rs 1022.57 crore in the cash segment. A total of Rs 5495.45 crore was sold
against a total purchase of Rs 6518.02 crore.
In
the near term, positive bias is expected to continue, however, rising COVID
cases in India would remain a key concern. As earnings season approaches,
investors’ focus will shift to earnings announcements and management
commentary. The Indian stock market is trading at a high valuation. In addition
currently, stocks based bullish trend on the local economy.
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.
In
the coming days, we expect volatility to continue until there is clarity over
the lockdown situation and availability of vaccines…. but apart from that the
market structure is made up of bulls…
The
earnings season would further add to the choppiness ahead so we suggest
investors maintaining stock-specific trading approach. Meanwhile, global cues,
metals and crude oil prices would also be on investors’ radar.
Technically, the important key resistances are placed at 14404 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 14575 – 15606 levels. Immediate support is placed at 14373 – 14303 levels.
Note:- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
