As suggested party continued on D-Street in passed week, Nifty is on historic high in the first week of 2021. Nifty gained 2.4% and Sensex gained 1.9% in last week. While Midcap & Smallcap index outperformed gained 5.2% and 3.8% respectively. Market momentum is backed by positive global cues after Democratic Party’s control over US senate, optimism on vaccine rollout, hope of strong quarterly earnings and consistent liquidity flow. The momentum is expected to continue in the coming week, and consistent FII inflow will fuel into market. Passed week rally supported by buying in Auto, IT, Metal, Infra, Reality and Healthcare stocks. FIIs net bought more than Rs 9,200 crore worth of shares in January so far, DIIs continued to prefer profit booking sold Rs 4,878 crore of shares for the same period. The momentum is likely to continue at least till the Union Budget 2021, raised hopes for better December quarter earnings, along with liquidity support and vaccine progress.
TCS announced impressive Q3 results; outcome of the TCS Q3 result will improve the opening mood of the IT index next week, next three biggest companies Infosys, HCL Technologies and Wipro will release their quarterly numbers next week. India continued to show strong improvement in coronavirus as the recovery rate reached to 96.41% against 96.08% last week with recoveries crossed 1 crore mark, government of India decided to start COVID-19 vaccination drive across the country on January 16. The Industrial Production and Manufacturing Production data for the month of November, along with CPI inflation for December will be released in the evening on January 12, while WPI inflation for December is due on January 14. Market will enter in the second week of Q3 season 58 companies will declare their Q3 earnings in the coming week, which includes frontline stocks like Infosys, Wipro, HCL Technologies, HDFC Bank, Tata Elxsi, Aditya Birla Money, L&T Finance Holdings, PVR.
Key factors for the week:
- Quarterly Results.
- COVID 19 Vaccine Progress.
- Union Budget 2021.
Technical indicators indicate a continuation of up trended move as per long term chart but trader needs to focus on stock-specific action. If Nifty sustains 14,432 levels then we may see rally towards 14,648 and 15,000. The maximum Put open interest shifted to 14,200 strike and is also likely to act as a major support in the coming week. Maximum call open interest at 14,500 followed by 15,000 and maximum put open interest at 14,200 followed by 14,000. Nifty could trade in the range between 14,000-15,000. Market may show biggest weekly rally in coming week. The volatility index IndiaVIX is 20.64 levels and which will give much comfort to Bulls.