Gaurav Bora ( Market Expert)
Market gained for seventh consecutive week ended December 18 due to optimism in the global markets. Nifty gained 1.8% and Sensex gained 1.9% in last week. While Midcap & Smallcap index outperformed gained 1.8% and 2% respectively. Markets gained on optimism in the global markets with US stimulus measures and developments in Brexit deal and improvement in industrial output in October. The momentum is expected to continue in the coming week, US is likely to announce stimulus package and further progress on the vaccine front and consistent FII inflow will fuel into market. Markets are expecting positive news on the vaccine front in India, three companies – Serum Institute of India, Bharat Biotech and Pfizer have already applied for emergency use authorisation for their vaccines. India crossed 1 crore infections but daily infections count trend has been declining with strong recovery rate and lower active cases recovery rate further improved to 95.40% which continued to support the sentiment of the equity market. The FII money seems to be unstoppable as they poured in around Rs 40,000 crore in Indian equities in December so far, which has been acting as a key role in taking the market to record high levels.
The Rs 300-crore Antony Waste Handling Cell IPO will open for subscription on December 21 to December 23, price band for the issue has been fixed at Rs 313-315 per share.
Key factors for the week:
• US Stimulus Announcement.
• BREXIT Deal.
• COVID 19 Vaccine Development.
• IPO of Antony Waste Handling Cell IPO will open for subscription on December 21.
Technical indicators indicates a continuation of up trended move as per long term chart but some profit booking from the higher levels can’t be ruled out. If Nifty sustains 13,800 levels then we may see rally towards 14,000. The maximum Put open interest shifted to 13,700 strike and is also likely to act as a major support in the coming week. Maximum call open interest at 13,800 followed by 14,000 and maximum put open interest at 13,700 followed by 13,500. Nifty could trade in the range between 13,500-14,000. Move above 13,800 could pull Nifty towards 14,000. India VIX reached to 18.62 levels during the last week, which is positive sign for the market.