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Stock Market Daily Updates: 14 Jan 2021

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.

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Dear Trader…

Indian equity Benchmark indices witnessed consolidation and ended little changed after a highly volatile session as expectations that a vaccine will eventually win the battle against the corona virus fuelled recovery hopes, while oil prices touched a one-year high.

Markets started the session on optimistic note as sentiments remained upbeat with report that a mega immunization drive against Covid-19 has kicked off with nine flights transporting over 5.6 million doses of the vaccine to 13 cities across the country. 

On the global front, Asian markets were trading mostly higher tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the corona virus fuelled recovery hopes. 

Trade sentiment remained cautious as India’s factory output or Index of Industrial Production (IIP) contracted 1.9 percent for November 2020 mainly due to poor showing by manufacturing and mining sectors. Industrial production of the country had grown at 3.6 per cent in October 2020 and 2.1 per cent in November 2019. 

Traders also took support from the government data showing that Consumer Price Index (CPI)-based inflation eased to 4.59 per cent in December 2020 compared to 6.93 per cent in November. Food inflation declined to 3.41 per cent in December, compared to 9.5 per cent in the previous month.

Meanwhile, Union Ministry of Commerce and Industry has said that India's new Foreign Trade Policy 2021-2026, under formulation, will come into effect from April 1, 2021, for five years and will strive to make the country a leader in international trade.

Nifty saw intraday volatility and poor advance decline ratio on Jan 13. Risks of sharp and sudden selloffs at high levels remain. One needs to be careful and keep long positions under control and keep taking profits on trading and some investment positions. 

The overall market breadth has turned negative, with an Advance: Decline ratio closing at 634:1258 and neutral at 82. The negative market breadth was mainly due to the weakness in the broad market indices of NSE like midcap 100 and small cap 100 by around 0.60% and 0.18% respectively.

In coming trading session, main indices have almost reached the high, in context with a bounce in the global and the domestic economy. Interim corrections should be used to accumulate, as the broader setup remains positive, the market may turn a bit volatile in the short term, as it will be difficult to maintain the momentum given important upcoming events so index is likely to trade volatile, 

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 14474 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 14636 -14676 levels. Immediate support is placed at 14474 - 14404 levels

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Ø INDEX MOVEMENT - 14.01.2021

  • Nifty Future closed @ 14606 as on 13.01.2021

Nifty Future has resistance at 14636 – 14660 Point; above which other resistance levels are at 14676 – 14707 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 14535 – 14505 Point; below14474 Point, other support levels are at 14434 – 14404 Point.

I am positive for the next bullish trend only above @ 14676 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 at 14676 Point, again then the upper side target is quite high and it may touch at 14707 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 @ 32685 as on 13.01.2021

Bank Nifty Future has resistance at 32737 – 32808 Point; above which other resistance levels are at 32838 – 32909 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 32606 – 32535 Point; below32474 Point, other support levels are at 32404 – 32320 Point.

I am positive for the next bullish trend only above @ 32808 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 at 32808 Point, again then the upper side target is quite high and it may touch at 32888 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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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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