Sensex and Nifty witnessed higher volatility in the final 5 trading sessions and the rollercoaster ride forced them to tank 1.6% every. The 30-stock Sensex now sits at 49,008 although the Nifty 50 is at 14,518. The bears seemed to be in manage for a excellent portion of the week as even the a lot-awaited IPOs, created their stock industry debut with a tepid initial trading session. Global industry cues had been soft as renewed worry of lockdowns cast a shadow of doubt on financial outlooks. Foreign Portfolio Investors (FPI) had been net sellers of domestic securities for 5 consecutive sessions. However, Friday’s bounce back from lows hints at bulls attempting a comeback.
Charts hint upside
Chartists think there is an chance for Nifty 50 to surge greater and carry on the momentum noticed on Friday. “On Thursday, the market stopped at a large support area and formed a bullish pattern today, which give us an indication that the coming week may be positive for the market,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
Nifty on the weekly chart has bounced back from the weekly 10 period EMA this week, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “The moving average is now at 14,590 and the Nifty closed just below it, as per week’s close. Previously, such downside violations of this EMA has offered strong upside bounce in the subsequent weeks in past,” he added.
If the index manages to breach 14,700 and sustain above it, Nagaraj Shetti believes it could open the possibility of additional upside. On the downside, he is maintaining a close eye on 14,400-14,350. Shrikant Chouhan on the other hand mentioned that Nifty could see a level of 14,750 or 14,900 till it breaks to 14,250.
Fundamental challenges stay
On the basic side, challenges nonetheless stay for Dalal Street. India has been witnessing a second wave of the coronavirus pandemic and the story has been the very same globally. Meanwhile, foreign investors have been pulling funds out as yields surged. “The stability in the market depends on the pace of vaccination and fourth-quarter results which are expected to be positive, given the recovery in economic activity during January and February 2021.,” mentioned Vinod Nair, Head of Research at Geojit Financial Services.
India will begin administering vaccine doses to every person above 45 years of age from April 1, which is anticipated to improve the quantity of these vaccinated and support fight the second wave.
The coming week will be trimmed quick to just 3 days of trading sessions. So far this year we have noticed two vacation-shortened trading week. While the very first quick week saw Sensex tank 4% the other one saw the index trade flat with a positive bias.