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We expect some correction after each rally. We advise investors to use correction in the market as an opportunity to buy, on the other hand, traders should maintain extra caution due to the expected rise in volatility ahead.
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Dear Trader…
Indian equities witnessed high volatility and the bulls have ruled positive market for the session on Thursday with strong global cues helped the bulls to put up a smart show but a mixed trend was seen in the broader market space, signaling caution ahead.
In our last note, we had only mentioned about the possibility of a selloff at higher levels in the Market. While trading precisely on the expected lines, Nifty saw a strong selloff at 15202, higher levels due to profit booking amid growing concerns over a spike in corona virus infections.
We observed profit booking in individual stocks, the profit booking trend was seen in so many sectors, which weighed down heavily on the market and thus market had a decent decline during the trading. But similar to recent bullish trend once again played out well in the market, which helped the market erase its losses completely. Overall it was a day with some decent rollercoaster move and fortunately due to sheer outperformance from Reliance, markets are back to safe terrain.
Market maintained their upward momentum after growth oriented budget, this raises the possibility of a bullish technical count, especially if it does not correct sharply on the succeeding day.
On the global front, U.S. stocks closed mixed, though the Dow eked out a new all-time high, after Federal Reserve Chairman Jerome Powell said he remained focused on getting Americans back to work and downplayed the risk of runaway inflation. A report on U.S. inflation also showed investors have little to worry about, for now, giving a brief boost to stocks in early trade.
The U.S. consumer price index rose 0.3% in January as expected, after climbing 0.4% a month earlier. Stocks were flat in early trading in Asia on Thursday as investors kept tapping the brakes on runs in asset prices after taking in tepid U.S. inflation data and comments from the Federal Reserve chief affirming the outlook for a slow recovery.
We expect some correction after each rally. We advise investors to use correction in the market as an opportunity to buy, on the other hand, traders should maintain extra caution due to the expected rise in volatility ahead.
Technically, the trend deciding is 15202. If NIFTY future trades above this level then we may witness a further rally up to 15272 - 15303 levels. However, if NIFTY future trades below 15088 levels then we may see some profit booking initiating in the market, which may correct up to 15008 - 14970 levels.
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Ø INDEX MOVEMENT - 12.02.2021
Nifty Future has resistance at 15232 – 15272 Point; above which other resistance levels are at 15303 – 15333 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 15130 – 15088 Point; below15088 Point, other support levels are at 15033 – 15008 Point.
I am positive for the next bullish trend only above @ 15272 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 @ 15272 Point, again then the upper side target is quite high and it may touch @ 15303 Point in the short term.
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Bank Nifty Future has resistance at 36008 – 36188 Point; above which other resistance levels are at 36272 – 36360 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 35777 – 35606 Point; below35606 Point, other support levels are at 35474 – 35303 Point.
I am positive for the next bullish trend only above @ 36360 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 @ 36360 Point, again then the upper side target is quite high and it may touch @ 36404 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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