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In the coming days, the Indian stock market will keep an eye on macro data, including domestic inflation, and factors such as the US Federal Reserve's policy meeting and Brexit internationally
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Dear Trader…
On the first day of the week, the Indian stock market started trading strongly. Global stock markets also rallied as reports of good progress in the development of the corona vaccine and the US approval of the Pfizer in the vaccine program and the rise in international crude oil prices surged to 50 a barrel.
The Index hit a new record high intra-day, as buying by foreign funds and foreign portfolio investors continued in the Indian stock market. The Sensex touched 46373 points for the first time and the Nifty futures hit a record high of 13612 points. The markets continued its momentum at the open and almost tested the 13600 levels. However, it panned out to be a day of consolidation as the indices then traded within a narrow range.
The broader trend continues to be positive and there are no signs of reversal yet. However, the broader market index is trading at its important juncture and hence, next few sessions would be important to determine whether there would be any pause to the on-going up move.
The Indian stock market has been in the overbought zone for a long time, but corona cases are declining and on the other hand, one positive news after another about corona vaccine is coming, which has kept the market bullish. In addition, IIP growth in October stood at a significant 3.6%, which is also expected to keep sentiment positive.
Global markets will also await the outcome of the US Fed policy two-day meeting begins December 15. India VIX was up by 3.26 percent from 18.79 to 19.40. Overall, lower levels of volatility suggest that the bulls are holding a tight grip and any small decline could be bought in the market.
The market will be heavily dependent on FII purchases. Consistent buying of FIIs is also continuing in the month of December after November. FIIs have so far bought an estimated net worth of Rs 26,928 crore in December, while DIIs have sold an estimated net worth of Rs 18,626 crore.
In the coming days, the Indian stock market will keep an eye on macro data, including domestic inflation, and factors such as the US Federal Reserve's policy meeting and Brexit internationally.
As far as Nifty future levels are concerned, 13606 - 13616 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13474 - 13434 now. A move below this support zone would result in an extended correction.
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Nifty Future has resistance at 13606 – 13616 Point; above which other resistance levels are at 13636 – 13670 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 13530 – 13505 Point; below13505 Point, other support levels are at 13488 – 13474 Point.
I am positive for the next bullish trend only above @ 13606 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!
Regarding Long term positions, it is preferable to remain cautious now.
If Nifty Future crosses @ 13606 Point, again then the upper side target is quite high and it may touch @ 13616 Point in the short term.
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Bank Nifty Future has resistance at 30838 – 30888 Point; above which other resistance levels are at 30930 – 31008 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 30707 – 30636 Point; below30636 Point, other support levels are at 30577 – 30404 Point.
I am positive for the next bullish trend only above @ 31008 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.
Regarding Long term positions, it is preferable to remain cautious now.
If Bank Nifty Future crosses @ 31008 Point, again then the upper side target is quite high and it may touch @ 31088 Point in the short term
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
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