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The Indian stock market is trading at a high valuation. In addition currently, stocks based bullish trend on the local economy.
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Dear Trader…
On the last day of the week, the Indian stock market started trading with the expected strength and as bond yields stabilized in the United States, local economic data improved.
Indian shares recovered from early losses to end higher on Friday in a volatile session, as a pullback in U.S. Treasury yields from 14-month highs brought back some risk appetite into the market, which has fallen nearly 2% this week. There is some minor correction in (U.S.) bond yields and the market is appreciating that.
FII and FPIs, on Friday saw a net purchase of Rs 1418.43 crore in the cash segment. A total of Rs 22775.24 crore was sold against a total purchase of Rs 24193.67 crore. Domestic institutional investors today saw a net sale of Rs 559.62 crore in the cash segment. A total of Rs 6944.08 crore was sold against a total purchase of Rs 7503.70 crore.
Extremely volatile domestic markets saw a smart recovery from the morning weakness and FMCG, pharma and energy stocks gained sharply, leading to gains and losses during the day.
The Nifty formed a bullish piercing candle on the daily scale and again reclaimed to its 50-DEMA. It continued forming lower-highs but closed positive after five trading sessions
The Indian stock market is trading at a high valuation. In addition currently, stocks based bullish trend on the local economy.
The market may show a decline in the coming days, but apart from that the market structure is made up of bulls. 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.
As bullish trade in stock likely to ease, along with the positive factors, caution will be required as the
Nifty Future has resistance at 14808 – 14838 Point; above which other resistance levels are at 14888 – 14909 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 14676 – 14606 Point; below14606 Point, other support levels are at 14575 - 14505 Point.
I am positive for the next bullish trend only above @ 14888 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 @ 14888 Point, again then the upper side target is quite high and it may touch @ 14909 Point in the short term.
Bank Nifty Future has resistance at 34373 – 34505 Point; above which other resistance levels are at 34575 – 34707 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 34008 – 33808 Point; below33808 Point, other support levels are at 33676 - 33505 Point.
I am positive for the next bullish trend only above @ 34575 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 @ 34575 Point, again then the upper side target is quite high and it may touch @ 34707 Point in the short term...!!
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