Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market rallied and moved higher to cross the immediate hurdle of 14,655/49,800. Even if the market does not hold at a high level, we can expect a rally in the best case scenario up to 14,750/50,000 and up to 14,850/50,500. As we are approaching the major event of Union Budget, it would keep the market volatile between the broader trading range. The strategy should be to buy on dips between 14,550-14,500/49,600-49,500. Keep a final stop loss at 14,450/49,200 for the same. The focus should be on commodities and auto companies.
January 20, 2021 / 04:27 PM IST
Ajit Mishra, VP - Research, Religare Broking
Extending yesterday’s gains, the market continued its upward trend and gained nearly a percent. Supportive global cues led to a positive start which was further fuelled by the buying in index majors. Consequently, markets touched a new record high largely led by healthy buying in Auto and IT counters. On the benchmark front, the Nifty ended with gains of 0.9% at 14,645 levels. All the sectoral indices, except FMCG, ended in the green.
The recent buoyancy on the global front combined with the supportive local cues are helping the index to regain momentum. However, volatility is still high on the stock-specific front. Keeping all in mind, we feel it’s prudent to continue hedged positions and prefer index majors over the others.
January 20, 2021 / 04:24 PM IST
Vinod Nair, Head of Research at Geojit Financial Services:
An optimistic western market aided the Indian market to touch lifetime highs with new buying in segments like Auto, IT and PSU Bank. So far, the Q3 results are better than forecasted and this has led to continued buying across sectors. Ahead of Joe Biden’s inauguration as President, the US market is on an upbeat mood with high expectations of a big US stimulus.
January 20, 2021 / 04:23 PM IST
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The USDINR bulls have taken a breather after Yellen's remarks on pushing for a fiscal stimulus package which is eventually going to increase inflation. The focus of the market is on Biden's inauguration for clues about his agenda in the first 100 days and whether he announces countrywide lockdown or continues Trump's stance against China as he takeovers. IPO related flows can keep the USDINR spot near 73 zone but a break of which can push price towards 72.75, while 73.50 will act as a resistance.
January 20, 2021 / 04:13 PM IST
Gaurav Dua, Sr Vice President, Head Capital Market Strategy & Investments, Sharekhan by BNP Paribas:
Sensex is at the doorstep of an important milestone of 50K mark. What a journey it has been for the benchmark index from 100 mark as on April 1979 to 50,000 mark in January 2021, which amounts to a compounded annual returns of just shy of 15.5% over the period of last 43 years. Clearly, equities as an asset class has exceeded returns from all other asset classes over the last four decades and the journey highlights the importance of equities as an essential component of all investor portfolios.
We are at a cusp of a new economy cycle and business uptrend in India. The pillars of the long term equity rally are in place, i.e., low interest rates, bank balance sheets on a mend, significant policy reforms along with the recent focus on attracting foreign investments and developing the Indian manufacturing sector.
January 20, 2021 / 04:12 PM IST
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee traded with strength with risky assets witnessing inflows after a statement from US Janet Yellen about stimulus rolling should be in large sums without thinking about debt right now. This push dollar bit lower towards 90.30 helping rupee scale beyond 73.
January 20, 2021 / 04:10 PM IST
Bajaj Finance Q3:
Bajaj Finance reported a 29 percent year-on-year (YoY) fall in consolidated net profit at Rs 1,145.98 crore for the quarter ended December 2020. Profit in the year-ago period was at Rs 1,614.11 crore.
The profit numbers missed market estimates as a CNBC-TV18 poll had estimated the numbers to the tune of Rs 1,190 crore.
Consolidated net interest income (NII) came at Rs 4,296 crore for the said quarter, down 5.3 percent YoY due to higher reversal of interest income at Rs 450 crore versus Rs 83 crore in Q3FY20 and higher cost of liquidity surplus at Rs 213 crore versus Rs 83 crore in Q3FY20.
January 20, 2021 / 04:07 PM IST
S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
Cash market volumes have shrunk this week as indecision has set in among institutional investors. The Union Budget is the next major event that traders would be focusing positioning towards - in that context, PSU Banks and Capital Goods sectors have attracted fund flows, in anticipation of announcements for these sectors. IT sector results beat expectations but existing long positioning acted as an overhang. In the meantime, FII flows which had been the primary driver of price performance, have slowed and appear poised to stay muted for the coming couple of weeks.
January 20, 2021 / 04:04 PM IST
Rohit Singre, Senior Technical Analyst at LKP Securities:
One more positive session along with that index made fresh levels today and closed a day at 14,645 with gains of nearly one percent formed bullish candle for the second consecutive day. Now the good base is created is around 14,560 followed 14,500 zone, holding above said levels index can show some more positive move towards 14,700-14,750 zone, also any dip near 14500 zone will be again buying opportunity. In Nifty Bank strong hurdle is still at 32,700 zone and any decisive break above 32,700 zone can quickly push the index to 33k zone.
January 20, 2021 / 04:02 PM IST
Ashis Biswas, Head of Technical at CapitalVia Global Research:
The market witnessed some strong trends and an attempt to overcome the resistance level around the Nifty 50 Index level of 14,600. While sustaining above 14,600 is the key factor from a short-term perspective, maintain above this level market to gain momentum and open the gate for a movement till 14,800/14,930. The momentum indicators like RSI, MACD to recover, and market breadth to improve, further strengthening the view of a short-term bullish outlook.