Technical View: Nifty forms bearish candle after hitting record high, consolidation likely to continue
As the Nifty appears to be in a consolidation phase, traders should remain neutral till the index witnesses a fresh breakout in either direction, Mazhar Mohammad of Chartviewindia.in said. Sunil Shankar Matkar January 07, 2021 / 05:47 PM IST
The Nifty50 hit a fresh record high but wiped out all the gains in late trade to close flat with a negative bias despite positive global cues on January 7. Select FMCG, IT and pharma stocks weighed on the market but buying in metals and select banks capped losses.
The Nifty50 opened higher at 14,253.75 and immediately hit an intraday record high of 14,256.25 but wiped out gains to hit the day s low of 14,123.10. The index settled at 14,137.40, down 8.90 points.
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NEW DELHI: Continuing its recovery path, the Nifty gained 1 per cent on Wednesday forming a bullish candle on the daily chart.
Rohit Singre, Senior Technical Analyst at LKP Securities said, “On the hourly chart, it seems index is in V-shaped recovery and if it turns to be true then we may see a current pullback to extend further towards 13,775, which is previous swing high and on other hand, good supports are formed near 13,550-13,460 zone.” Market is continuing its rally amidst concerns over new virus strain, lockdown and weak global cues, fueled by IT, mid and smallcaps. The additional stimulus announced in the US did not gain much momentum in the global market as the quantum of the benefit was well-factored, but Europe and EMs are maintaining buoyancy. In the coming days, the market will also focus on Brexit trade deals, which are expected to be finalized soon and fallout in the economy due to strict lockdown, said Vinod Nair, Head of Research at Geojit Financ
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Nifty futures on the Singapore Exchange traded 55 points, or 0.41 per cent, higher at 13,633.50, in signs that Dalal Street was headed for a positive start on Wednesday. Here are a few stocks which may buzz the most during the day.
Mahindra & Mahindra (M&M): Automotive major M&M said that it will increase the prices of its commercial and passenger vehicles effective 1 January next year.
BPCL: Privatisation-bound Bharat Petroleum Corporation (BPCL) has said its board will on Thursday consider buying out Oman Oil Company in the Bina refinery project in Madhya Pradesh.
Future Enterprises:Future Enterprises Ltd (FEL) is planning to prepay the debentures issued by the company from the money to be received after selling its retail and other businesses to Reliance Industries step down firm Reliance Retail Ventures.
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Mumbai: Among the key bulk deals on Tuesday, Everstone Capital Partners further sold stake in publisher S Chand and Co, while Unifi AIF offloaded shares of smallcap insurance technology firm Majesco after it announced a dividend of Rs 974 per share.
Of the frontline indices, market barometer Sensex edged up 9.71 points to close at 46.463.17, while peer Nifty too advanced 9.70 points to 13,567.85.
Here’s who bought and sold what in some of the key bulk and block deals of the day: Everstone Capital Partners II LLC sold another 18,00,000 shares of S Chand & Co. On Monday, it had sold 4,00,000 shares of the publishing company at Rs 71.30 per share. It held 9.38 per cent stake in the company at the end of September quarter.