InvestorQ : Can you tell me your stock market view for the 11 Jan 2021? Can the Nifty really move higher from here?
NISHA Nayak made post

Can you tell me your stock market view for the 11 Jan 2021? Can the Nifty really move higher from here?

diksha shah answered.
2 years ago

On Friday, the Nifty gained 200 points and the Sensex gained 700 points with both the indices closing at life time highs. Last week, the markets were buoyed by the results of TCS and Avenue Supermarts and there are likely to be more such key results during this week. For now the big focus will be on the technology IPOs like Infosys, HCL Tech and Wipro.

We can see a lot of crucial data coming out this week. For example, on 12 January, the CPI inflation for Dec-20 and a poll by Reuters has already estimated this inflation much lower at 5.28%. IIP for Nov-20 will be announced this week as will be the WPI inflation. Other key data points include trade data, bank deposits data and forex reserves data.

Foreign portfolio investors or FPIs were net buyers during the week to the tune of Rs.9300 crore with Rs.6030 crore coming in just on Friday. In the meanwhile, the domestic selling continued unabated as DFIs sold Rs.2373 crore of Indian equities. Global money continues to pour in and January 2021 promises to be another strong month for FPI flows.

NASDAQ was up a 130 bps on Friday even as the Dow was only marginally higher. European markets also traded with gains of 50-60 basis points as most markets appeared to reconcile with concerns over COVID and the second lockdown. SGX Nifty is almost flat and the trade cues on Monday are likely to be driven by the Asian markets and Dow Futures later.

If you look at the options accumulation, it does look like the Nifty is headed higher. The put-call accumulation range has moved up to 14,300 on the lower side and 14,600 on the higher side. That still leaves room for the Nifty to appreciate from current levels. However, traders will have to be cautious at higher levels as the risk-reward is getting unfavourable.