Following a volatile trade all through the session, BSE Sensex and Nifty 50 ended the final day of the year 2020 on a flat note. Both the indices hit intraday record highs today. Sensex ended just 5 points up but clocked a record closing higher of 47,751. On the other hand, Nifty 50 settled flat at 13,981.75, following crossing the important 14,000 for the duration of intraday for the 1st time ever. On a year-to-date (YTD) basis, Sensex jumped 16 per cent when Nifty managed to obtain 15 per cent. Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services, told TheSpuzz Online, that 12450 and 12800 are important help levels for the Nifty 50 index in 2021, any slip beneath this will entail a reversal of the trend. With Nifty in uncharted territory, Vaishnav mentioned that resistance levels would be 14950 and 15800 in CY21.
Nifty 50 may possibly attain 14,800 in CY21
During the second half of the calendar 2020, the Nifty 50 index moved from strength to higher strength. It almost doubled from the March lows of 7,511 to finish the final day at 13,981.75. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, told TheSpuzz Online that it appears evident that going into 2021 this bullish trend will continue. Between July and September this year, 10800 was conquered which was a stiff resistance patch. “The index now has the wings to claim 14600 during the course of the new year and can also attempt 14800,” he mentioned. 10800-11500 is a very good help variety for this sturdy up move and till that holds, Hathiramani believes that the general trend for 2021 would stay positive and boisterous. “Any corrective wave down can be utilised to build long positions for higher targets,” he mentioned.
‘Markets may see correction if FPI flows dry-up’
A host of things such as Union Budget 2021, corporate earnings, macroeconomic information, auto sales quantity, along with COVID-19 vaccine roll-out and other international cues will set the industry tone for the year 2021. Dhiraj Relli, MD & CEO, HDFC Securities believes that a big portion of the Nifty run-up is more than and, from now on, its rise (if substantial) would be gradual and measured. “In the interim, we may see bouts of correction, especially if FPI flows dry up for a couple of days/weeks,” he mentioned. Stock-sensible moves could continue to take location even as institutions continue to take greater exposure out of their erstwhile preferred 50-80 stocks.
Vaishnav also mentioned that the bulk of the Nifty 50’s gains have come more than the final quarter exactly where the index piled up close to 34 per cent. He also expects the frontline markets to keep in a broad consolidating variety as it requires a prospective breather from the existing rally. “Since the present rally has been largely fueled by strong FII Inflows triggered by extreme weakness in the Dollar Index, keeping an eye on the Dollar Index would be crucial as a technical pullback in the Dollar may disrupt the present up move,” he mentioned.