Ahead of Market: 12 things that will decide stock action on Monday
SECTIONS
Share
Synopsis
Analysts said the 14,200 level, which was acting as a key hurdle until now, will be the immediate support for Nifty.
Shutterstock.com
India VIX rose marginally by 0.10% from 20.62 to 20.64 level.
NEW DELHI: After touching a new all-time high in intraday session on Friday, Nifty formed a bullish candle on the daily and the weekly charts. The 50-pack index formed higher highs for the 12th trading session in a row.
On the technical front, analysts see hurdles for the index as it heads towards the 14,500 level. “The market remains overbought in the short term, and we maintain a cautiously bullish outlook unless Nifty breaks below 13,950 level,” said Nirali Shah, senior research analyst at Samco Securities.
Analysts said the 14,200 level, which was acting as a key hurdle until now, will be the immediate support for the index, which seems to have set sights on the 14,500-14,600 zone now. Below that, the 13,950 level may continue to offer strong support to the index, they said.
After The Bell: Profit-booking hits D-St, here’s what investors should do on Friday
The Nifty has to continue to hold above 14,000-14,050 to witness a fresh move towards 14,250 then 14,400-14,500 zones, while on the downside, major support exists at 14,000 and 13,900. January 07, 2021 / 04:47 PM IST
Profit-booking hits D-Street on January 7, pushing the Nifty in the red after hitting a record high of 14,256 in the intraday trade. The S&P BSE Sensex, too, failed to hold on to gains and closed 80 points down at 48,093. The Nifty ended 8.9 points lower at 14,137.
Sectorally, action was seen in metals, telecom, capital goods as well as realty, while profit-taking was seen in FMCG, IT, power and healthcare stocks.
Explore Now
Nifty opened negative on Monday and made a new lifetime high of 13,777, but failed to hold the immediate support at 13,600 level and nosedived sharply to 13,131 level. The index negated the formation of higher highs and lows on the weekly scale and broke the rising support trend line on the daily scale, which doesn’t bode well for the bulls after the strong movement of last many weeks.
Techanical indicators are turning negative from the overbought territory. So one needs to stay light as long as the index doesn’t get stability. Now as long as it doesn’t surpass the 13,450-13,500 zone, profit-booking decline is possible towards the 13,131 and 13,000 levels.