Roaring Bull market hits new highs for a fourth consecutive week
We are in a roaring bull market where the Indian market ended with gains for the fifth consecutive week while it was the fourth consecutive week when Nifty/Sensex hits fresh all-time highs. Nifty knocked the high of 13280 whereas; Sensex touched the high of 45148 while both ended with a gain of more than 2%.
There was gain across the board because all sectors or pockets end on a positive note where the metal index shines with a splendid gain of 8%.
What data is suggesting?
FIIs are at the driver’s seat of this bull run as they again bought around 10,205 cr in the cash market in the last week while DIIs are in the mood of selling where they sold around approximately 6090cr.
On the derivative front, FIIs long exposure in index future stands at 77% vs last week of 82%, but it is still a little elevated level while Put-Call ratio (PCR) is placed at 1.57 mark which is a comfortable mark.
What technical charts say?
Nifty is in strong bullish momentum where 13000-12950 is an immediate and strong demand zone. We can talk of any kind of profit booking only below this zone while 13450/13600 is the next target levels in the upside.
If we talk about the Banknifty then it is trading near the supply zone of 30000-30200 where if it manages to trade above this level then we can expect another leg of the rally towards the 31000-31500 zone while on the downside, 29000 is an immediate and critical support level, below this, we can expect any serious profit booking.
What are the factors to watch out for the next week?
- FIIs’ behaviour: The key driver of the current rally is FIIs’ inflows therefore their behaviour will remain a key factor for the market direction.
- Global market: The direction of the global market will continue to have an impact on our market as we are in a global bull market.
- Updates related to vaccines and new covid19 cases will have an impact on the market.
- Macroeconomic data: On the domestic front, We will have our IIP and CPI data on Friday which can create some kind of volatility in the market.