Dear Patrons; the week gone by started on a positive note; the indices on the Indian bourses made a record high on the first trading day of the week. The markets were; however; unable to sustain the rise and fell off from the highs to end in the red on four out of the five sessions. Friday also saw a somber opening but the bulls gathered momentum as the day progressed and the markets ended the session on a positive note.
Markets were mostly driven by global news flow last week. Domestically we are doing fine. The second wave of the pandemic looks under control. More places are opening up for more time. Domestic consumption looks on the rise as is evident from the auto sales numbers. Globally also the situation related to the pandemic is under control and economies globally are trying to gather momentum. The markets, however, as is their habit were looking forward towards interest rate increase in the US in 2022 and were on a selling mode.
On domestic front Reliance AGM acted as a dampener for the markets. A big ticket event which was not good enough for the markets to move up.
As can be seen from the above chart, Nifty looks to have bottomed out for the coming week. Targets of 16100 are visible on the Nifty. The Vix also indicates strength in the markets. Indices should make new high in the coming week and sustain around the 16000 mark on the Nifty.
Banks, private as well as PSUs, should be in the reckoning for the next week, along with oil and gas sector. One should be accumulating good quality banking stocks in each fall.
FMCG should also in the watchlist, as the sector looks to be gaining once the lock downs are over.
Stay Invested!!!
Happy Investing!!!
