Saturday, December 19, 2020

Stock Market Weekly Outlook | Nifty & BankNifty | (21-24) Dec 20

  

Stock Market Weekly Outlook for (21-24) Dec 20


Stock Market Today 

Indian equity benchmarks ended Friday's choppy session at record closing highs but with small gains, tracking gains in index majors Infosys, Bajaj Auto and SBI. After making cautious start, benchmarks traded with a negative bias for most part of the day, as pessimism spread among the investors with a private report stated that venture investments by private equity and venture capital funds were 27 percent lower on yearly basis in November at $3.9 billion, and more than halved from the $8.5 billion reported in October. 

Some anxiety also came with a  private report stating that the current pandemic is likely to shape consumer thinking and consequently impact shopping behaviour, and the overall consumption growth is likely to get delayed by up to two years. It also said that the household consumption is going to be negatively impacted over 2020 and 2021. Market participants also took a note of Finance Minister Nirmala Sitharaman’s statement that the government has taken several measures to support the economy but no amount of intervention will be adequate to deal with the crisis triggered by the COVID-19 pandemic.

However, last hour buying in select IT, TECK and healthcare stocks helped indices to settle the day in the green. Some support came as ICRA pegged the contraction in the economy at 7.8 per cent for 2020-21. Before the GDP numbers for Q2 were out, it had predicted the fall in the economy at 11 per cent. It said improving economic fundamentals, a bright outlook for the rabi season, and the visibility of vaccine availability are expected to strengthen demand.

 Traders also found some solace with Union Minister Piyush Goyal’s statement that sustainability has become an important element of decision-making both in the government and the corporate sector of the country. He said sustainable development will further enhance the scale and speed of growth in the years to come. Besides, CBDT said further adding to the recovery signals, advance tax payment by companies has shown a massive 49 per cent growth to Rs 1,09,506 crore in the third quarter this fiscal. 


Nifty Outlook



Friends as we discussed in the previous weekly outlook that we will make new all time highs in the Nifty and market behaves on our expectations and closed near the levels that were provided .

Still our Nifty is strong and not showing any sign of major correction . Routine or small correction can happen in the market and that should be utilized as buying opportunity. So we should remain with trend and do not trade against the trend until any trend reversal found later.

So traders are advised to maintain a 'buy on dips' approach while keeping their focus on the selection of sectors and stock specific.
In the upcoming week we can test  14000 levels in upside So any dip or correction should be utilized as making long position. 
In downside 13451 will be an important support for the Nifty.  Now from here not much upside left in December series.



BankNifty Outlook


Still  BankNifty is strong and not showing any sign of major correction . Routine or small correction can happen in the market and that should be utilized as buying opportunity.  So we should remain with trend and do not trade against the trend until any trend reversal found later.

Traders are advised to maintain a 'buy on dips' approach. 
In the upcoming week we are moving towards 31648 in upside So any dip or correction should be utilized as making long position. 
In downside 29814 will be an important support for the BankNifty.  



Thanks for your Precious Time.


Finvest Online
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Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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