Finally, we are in 2021, the new year where we are seeing hopes of new opportunities and fast growth. 2020 was the mysterious year wherein the March, the entire world was in extreme pessimism mode but we witnessed a strong comeback whether it is economy, health system, humanity and the most important our market which surprised everyone by its stellar move.
Nifty & Sensex rallied almost 90% from March lows and they ended 2020 with a decent gain of 15%. The market begins 2021 with new heights where Nifty hits high of 14050 while Sensex hits a high of 47980. At the end of the week, Nifty and Sensex ended with a gain of about 2%.
What is stored in the data?
FIIs are continuing their buying trend however the momentum has slowed down due to the New Year holiday where they bought around 7493cr in the cash market last week while DIIs are still in the selling mood where they sold around 4171 Cr.
If we talk about F&O data then FIIs’ long exposure in index futures stands at 75% which is an overbought territory and it means if something negative comes then we may see sharp correction because the market is not perfectly hedged. PCR stands at 1.37 mark which is a comfortable level.
What charts are saying?
Nifty is trading above the psychological mark of 14000 where 14200 is an immediate hurdle while 14350 will be the next hurdle. On the downside, 13950 is an immediate support level while 13800-13750 will be a critical demand zone because below 13750, we can expect any serious profit booking.
Banknifty is also trading above its important hurdle of 31000 while it is facing some resistance in the 31500-31650 zone. If it manages to cross the 13650 mark then we can expect a rally towards 32500/33000 levels. On the downside, 31000-30800 is an immediate demand zone while 30000 will be the critical support level.
Cues for the next week:
- Earning session will kick off by the results of TCS on 8th Jan, Friday.
- Service and Manufacturing PMIs numbers will come globally including India which could have some impact on the market.
- Budget will come on 1st February but a pre-budget may be seen in coming days.
- FIIs’ behaviour will be the key to the market direction.
- Progress of vaccines and Trend in covid19 cases will continue to impact the stock market.