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The market will keep an eye on the attitude of foreign institutional investors, crude oil prices, the rupee's move and an ahead of policy meetings of the US Federal Reserve and the US stimulus package to be finalized this week,
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Dear Trader…
With the Indian stock market currently in an overbought-risk zone, the market saw an initial decline with cautious on the back of weak global cues and an ahead of policy meetings of the US Federal Reserve and the US stimulus package to be finalized this week. The outcome of these events was expected to be positive and would trigger further positivity in the market.
Markets remained sideways and settled marginally higher. Initially, the bias was on the positive side but profit-taking at the higher levels trimmed all the gains as the day progressed. A mixed trend was witnessed on the front, Recent IIP and CPI data have been encouraging and emboldened investors’ confidence as prospects of an earnings recovery remain intact along with a weak dollar and hope of a fresh fiscal stimulus in the US, should continue to aid FPIs flow, which has been a key driving force for the domestic markets.
The country's forex reserves have risen sharply due to the flow of dollars. As long as the inflows into equities are huge, the rupee will remain strong, however, with the rise in crude oil prices, the pressure on the trade deficit has also increased the risk of depreciation of the Indian rupee.
The success of the vaccine against corona has led to resurgence in crude oil prices in the hope that the global economy will recover. In addition, the demand for petrol and diesel in India is also increasing. As a result, refineries are getting more crude oil. The dollar may also strengthen in the event of a positive outlook for the US economy at the US Federal Reserve meeting.
Market participants may take note of report that India has released detailed guidelines for COVID-19 mass vaccination drive that will begin soon. At a time when the world is plagued by the corona virus outbreak, research into the corona vaccine has led to the approval of new vaccine experiments in various countries amid claims by several companies. Mega preparations for mega vaccination have been started by countries including India. The central government is planning to vaccinate nearly 30 crore people during the first phase of vaccination. Pfizer, Serum Institute of India and Bharat Biotech have applied for market authorization for their vaccines.
The liquidity-driven rally which has been heavily dependent on foreign funds and we reiterate our positive yet cautious approach citing overbought conditions and suggest limiting leveraged positions. It’s prudent to stick with a stock-specific trading approach and using dips to add quality stocks, traders should align their position according to the market trend and avoid contrarian trades unless we see some sign of a reversal in price itself.
The market will keep an eye on the attitude of foreign institutional investors, crude oil prices, the rupee's move and an ahead of policy meetings of the US Federal Reserve and the US stimulus package to be finalized this week,
However, intermittent profit booking cannot be ruled out given the sharp rally in the past few weeks. Technically, Nifty future has to hold above 13606 levels to witness an up move towards 13636 - 13676 levels while on the downside major support exists at 13373 levels.
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Ø INDEX MOVEMENT – 16th December 2020
Nifty Future has resistance at 13606 – 13616 Point; above which other resistance levels are at 13636 – 13660 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 13533 – 13505 Point; below13505 Point, other support levels are at 13474 – 13404 Point.
I am positive for the next bullish trend only above @ 13636 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 @ 13636 Point, again then the upper side target is quite high and it may touch @ 13676 Point in the short term
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Bank Nifty Future has resistance at 30733 – 30808 Point; above which other resistance levels are at 30888 – 30909 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 30575 – 30505 Point; below30505 Point, other support levels are at 30373 – 30303 Point.
I am positive for the next bullish trend only above @ 30909 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 @ 30909 Point, again then the upper side target is quite high and it may touch @ 31008 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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