As expected, the Indian stock market started with a boom. The last week of long-running foreign funds saw heavy selling, with the transition to India’s corona worrying. The Indian stock market is still bullish as the weight of the stock continues to rise in the case of global and domestic crises.
The bulls continued to dominate and posted new highs, due to upbeat strong global signals.
Nifty futures opened at 14750.00 points against the previous close of 14751.45, opening at a low of 14701.00 points. Nifty Future closed with an average movement of 249.00 points and a strong rise of around 129.05 points and around 14880.50 points..!!!
On the NSE, the Midcap 100 Index rose 1.32% and the Small Cap 100 Index rose 1.71%. Speaking of various sectoral indices, the NSE saw gains in banks, PSU banks, private banks and auto toms while all other sectoral indices remained closed. A total of 215 stocks traded on the NSE.
At the beginning of intra-day trading, June Gold opened at Rs.45766, fell from a high of Rs.46391 points to a low of Rs. 45742, with a rise of 403 points, a trend of around Rs.46322 and May Silver opened at Rs.65690, fell from a high of Rs. 66444 points to a low of Rs.65679, with a rise of 371 points, a trend of around Rs.66268..!!
The Indian stock market is still in an overbought position as the global and local Corona case continues to weigh on the stock. Volumes on the NSE were below recent averages. Investors will be keeping an eye on the central bank’s liquidity stance to support the economy in relation to rising COVID-19 cases and inflation forecasts amid a rise in global commodity prices, especially crude oil.
The market may show a decline in the coming days, but apart from that the market structure is made up of bulls. The market is booming due to the success of vaccines. there have been corrections in the bullish phase in the past as well. This time too, along with the positive factors, the bullish trade in stocks is likely to ease, so caution will be required.
It would be advisable to book a partial profit now, realizing that the current record highs have been an invaluable opportunity for profit booking.
Technically, the important key resistances are placed at 15008 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 15088 – 15105 levels. Immediate support is placed at 14808 – 14770 levels.