The upmove in the markets was additional supported by the news of acceptance of Pfizer-BioNTech COVID-19 vaccine by the UK government.
BSE Sensex and Nifty 50 continued to rally and added almost a single per cent gains this week. Sensex breached the psychological level of 45,000 on the upside for the initially time in the history whilst the broader Nifty 50 index jumped above the essential 13,250 levels. This was fifth consecutive week for the Nifty 50 exactly where it managed to post optimistic returns. The broader markets also ended with healthful gains this week. The marketplace rally was fuelled by newsflow associated to COVID-19 vaccine, RBI MPC policy, GST collection in November and much better-than-anticipated GDP numbers.
Events of the week: RBI maintained its status quo for the third consecutive monetary policy. The six-member MPC voted unanimously to preserve the stance accommodative to facilitate the recovery in the financial indicators. The central bank also mentioned that all the liquidity that it has injected into the marketplace has accomplished its target. Another occasion was that India’s GST collection crossed the Rs 1 lakh-crore-mark for the second consecutive month in November 2020. The up move in the markets was additional supported by the news of acceptance of Pfizer-BioNTech COVID-19 vaccine by the UK government.
Technical speak: Nifty 50 index ended on a optimistic this week primarily due to purchasing in metal and auto stocks. In truth Nifty Bank index also posted gains for the fifth straight week, crossing the 30,000 level, right after RBI upgraded its GDP target to (-)7.5 per cent from (-)9.5 per cent earlier for the existing fiscal year. “In the coming week, Nifty 50 index would face major hurdle at 13350/13400 levels, which is nearby, however, the Bank Nifty should outperform and move to 31000 levels without any major efforts. The strategy should be to buy on dips with a final stop loss of Nifty 50 index at 13100,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
India VIX: India VIX additional cooled off by 5 per cent to 18 levels. Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd mentioned that decrease levels of volatility also recommend that bulls are holding the grip and any decline could be purchased in the marketplace.
What to anticipate in subsequent week: Analysts anticipate a sectoral rotation theme in the upcoming week. Investors have been advised to accumulate FMCG, IT and Pharma stocks in a SIP format offered their consolidation is underway. “Any negative news may take markets lower which would offer a buying opportunity for investors to pick up quality names,” mentioned Nirali Shah, Senior Research Analyst, Samco Securities.