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Markets are largely mirroring global cues but the benchmark looks slightly overbought so the possibility of consolidation in the near term cannot be ruled out and it would be healthy for markets
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Dear Trader…
The bulls continued to dominate and posted new highs, due to upbeat strong global signals over the announcement of a Covid-19 related relief package in the US in the coming days. It is a broad-based participation as momentum is all sectors witnessed good momentum with realty leading the rally in hopes of a revival in demand.
The investment made by FPI in the current calendar year 2020 is the highest in the last 18 years. Earlier, in 2002, their highest investment record was broken, in the current year 2020, FPIs have so far invested an estimated Rs 1.4 lakh crore, This is the highest investment figure since 2002 in the Indian stock market. In addition, FPI has invested more than Rs 1 lakh crore five times a year since its entry into India.
On the one hand, FIIs are buying heavily while on the other hand, domestic institutional investors are selling. The spread of the corona virus has led to economic woes in countries around the world whose central banks have taken liquidity-boosting measures to boost the economy, which foreign institutional investors are taking advantage of to invest in asset classes such as equities.
Friends, we believe that economic activities from the October are moving fast with signs of a V-shape recovery started with a positive undertone of the markets and advice traders to accumulate on meaningful dips. Recovery is getting the most support from agriculture, followed by the construction and manufacturing sectors. On the other hand, the relief package provided under the Self-Reliant India Mission has put the economy on the path to recovery.
Markets are overheated now, and therefore, it’s vital to exercise caution. Picking up the right stock at a fair price should be the focus, instead of buying stocks with lower valuations with no change in a company's fundamentals.
Greed to make quick bucks should be tamed, and the emphasis should be on looking at the bigger picture encompassing your financial goals and risk appetite, among others. Avoid relying on emotions and getting carried away in the rally.
Markets are largely mirroring global cues but the benchmark looks slightly overbought so the possibility of consolidation in the near term cannot be ruled out and it would be healthy for markets.
In my personal opinion, it would be advisable to book a partial profit now, realizing that the current record highs have been an invaluable opportunity for profit booking. As the market has been in the overbought zone for a long time, it will not take long for the scenario to become difficult to sell again in a sudden correction. So that caution will be necessary.
In the coming days, on the international front, the Indian stock market will be watching the decision of the Bank of England on interest rates to be announced, December 17 and the meeting of the Bank of Japan for interest rates on December 18, 2020 along with global markets. It will also keep an eye on international crude oil prices.
As far as Nifty future levels are concerned, 13707 - 13737 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13606 - 13570 now. A move below this support zone would result in an extended correction.
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Ø INDEX MOVEMENT – 17.12.2020
Nifty Future has resistance at 13717 – 13737 Point; above which other resistance levels are at 13777 – 13808 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 13636 – 13606 Point; below13606 Point, other support levels are at 13570 – 13533 Point.
I am positive for the next bullish trend only above @ 13777 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 @ 13777 Point, again then the upper side target is quite high and it may touch @ 13808 Point in the short term...!!!
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
Bank Nifty Future has resistance at 30808 – 30888 Point; above which other resistance levels are at 30933 – 30979 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 30676 – 30606 Point; below30606 Point, other support levels are at 30434 – 30303 Point.
I am positive for the next bullish trend only above @ 30979 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 @ 30979 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
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.