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Stock Market Daily Updates: 1 Dec 2020

We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level. The next important key resistances are placed at 13088 levels, which could offer for the market on the higher side. Sustainability above this zone would signal open the door for a directional up move with immediate resistances seen at 13103 -13133 levels. Immediate support is placed at 12888 - 12808 levels.

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Dear Trader…

Bullish trend was seen in the Indian stock market last week, the BSE Sensex and the Nifty Futures hit a record high of 44825 points and 13137 points, respectively, on the back of positive trends in global markets and the arrival of foreign funds and foreign portfolio investors.

Following the Corona lockout, FPI had a record net sales of Rs 66,000 crore in the equity segment in March 2020, in stark contrast to the November 2020 acquisition of an estimated Rs 55,576 crore in the equity segment till November 25.

Disputes over the US presidential election have eased and various foreign brokerages and rating agencies have revised previous estimates of the Indian economy, which has had a positive effect on sentiment. The recovery of ‘V’ shape in the Indian stock market has been due to the purchase of FPI in the Indian stock market, another reason behind the large buying of FPIs is the consideration of a more stimulus package by the world's central banks to reduce the impact of the corona.

Friends, the stock market rally has now reached its peak and the Sensex has crossed an estimated 44,400 points. On the other hand, all reports on the economy are coming in negative. The bullish trend phases the bullish range and the correction in the stock market cannot be ruled out.

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.

Globally, The Bank of America expects the September quarter economic growth figures to be better than the June quarter, which will be released later this month. Trump’s team has banned the emergency lending program from the US Treasury, which will have an impact around the world if the new US administration, under Biden's representation, plans to provide 1 trillion in fiscal stimulus in February. 

GDP has been negative at 7.5 per cent in the September quarter after being negative at 24% in the June quarter. The Bank of America also estimates that India will see a current account surplus of 1% at the end of the current financial year, given the sharp decline in imports. The economic growth rate for the current full financial year has been revised to 7.50% negative from 11% previously.

Friends, Corona cases are growing rapidly around the world and lockdowns are being re-imposed. With corona cases on the rise in several states in India, the state government is again considering banning certain services, good progress is also being made in vaccine development for corona virus resistance to corona virus infection and more mega stimulus measures are being considered in the US, Europe to bring the economy back on the path of recovery.

The Modi government's commendable efforts to get the Indian economy back on track have led to huge growth in foreign funds - foreign portfolio investors who have seen huge growth opportunities in India in the coming days, but there are still many challenges on the economic front. Under the circumstances, the performance of Corporate India is likely to weaken and it will still be necessary to be cautious about the rise in stocks.

We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level.

The next important key resistances are placed at 13088 levels, which could offer for the market on the higher side. Sustainability above this zone would signal open the door for a directional up move with immediate resistances seen at 13103 -13133 levels. Immediate support is placed at 12888 - 12808 levels.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

  • INDEX MOVEMENT of 1st December 2020
  • Nifty Future closed @ 13017 as on 27.11.2020

Nifty Future has resistance at 13088 – 13103 Point; above which other resistance levels are at 13133 – 13202 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 12970 – 12933 Point; below12933 Point, other support levels are at 12909 – 12888 Point.

I am positive for the next bullish trend only above @ 13133 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 @ 13133 Point, again then the upper side target is quite high and it may touch @ 13202 Point in the short term

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

  • Bank Nifty Future closed @ 29667 as on 27.11.2020

Bank Nifty Future has resistance at 29733 – 29808 Point; above which other resistance levels are at 29888 – 29933 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 29606 – 29474 Point; below29474 Point, other support levels are at 29373 – 29290 Point.

I am positive for the next bullish trend only above @ 29808 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 @ 29933 Point, again then the upper side target is quite high and it may touch @ 30033 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.


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sensex Stock Market Daily Updates

Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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