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Stock Market Daily Updates: 20 April 2021

Nifty Future has resistance at 14404 – 14434 Point; above which other resistance levels are at 14474 – 14505 Point with highly Volatile Trend,

Photo Credit :

1595910044_uDKqsY_2020_07_28T041635Z_1_LYNXNPEG6R08J_RTROPTP_4_GLOBAL_MARKETS.JPG

Dear Trader…

As expected, the Indian stock market bullish run stopped at a red mark due to unprofitable selling from higher levels, the Nifty couldn't sustain in the higher territory and faced sharp selling pressure there and it aggravated as the day progressed.

Monday turned out to be a disappointing day of trade for Indian equity benchmarks as frontline gauges shaved off one and a half percentage points, as traders remained concerned over surging COVID-19 cases in the country. Our markets started the week with a gap down on back of worries over rising cases of Covid-19 in our country in this second wave. The rising cases of Covid -19 and a fear of probable lockdown in some parts of the country led to a sell-off in our markets which resulted in a huge under performance compared to the global peers.

The Banking and Financial stocks which have good weightage in the Nifty index as well have been under-performing recently and many stocks from this sector witnessed a cut of 5-10 percent today. The only relative outperforming space today were the Pharma stocks.

India has entered into the 2nd wave of covid spread and this time the infection rate was too high than what we have seen in covid 1st wave. If we look at the positive ratio of covid in different states it's as high as more than 20%, today India has crossed the mark of 2.7 lakhs cases.

We suggest investors be cautious on the market, don’t take leverage positions for the short term and even clients can take hedge positions also for their portfolio.

The rating agency expects a moderately worse environment for the Indian banking sector in 2021, but headwinds would intensify if rising infections and follow-up measures to contain the virus further affect business and economic activity. India’s active COVID-19 infections have been increasing at a rapid pace with new infections exceeding 2 lakh a day in early April 2021, against 9,300 in mid-February. The agency said ‘the government’s more accommodative fiscal stance may also mitigate some short-term growth pressures.

However, inoculating India’s large population in a fast and effective way will be important to avoid repeated disruptions’. Fitch forecasts India’s GDP growth at 12.8 per cent for the current financial year ending March 2022 and this incorporates expectations of a slowdown in the April-June quarter due to the flare-up in new coronavirus cases.

Technically, the important key resistances are placed at 14404 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 14434 – 14474 levels. Immediate support is placed at 14272 - 14202 levels.

Nifty Future closed @ 14384 as on 19.04.2021..!!

Nifty Future has resistance at 14404 – 14434 Point; above which other resistance levels are at 14474 – 14505 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 14313 – 14272 Point; below 14272 Point, other support levels are at 14232 - 14202 Point.

I am positive for the next bullish trend only above @ 14474 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 @ 14474 Point, again then the upper side target is quite high and it may touch @ 14505 Point in the short term...!!!

Bank Nifty Future closed @ 31267 as on 19.04.2021..!!

Bank Nifty Future has resistance at 31373 – 31505 Point; above which other resistance levels are at 31676 – 31808 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 31008 – 30808 Point; below 30808 Point, other support levels are at 30676 – 30303 Point.

I am positive for the next bullish trend only above @ 31676 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 @ 31676 Point, again then the upper side target is quite high and it may touch @ 31808 Point in the short term...!!

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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.


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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