InvestorQ : What is your trade view for Friday 05 February 2021? Do you see profit booking being the last day of trading for the week?
Dhwani Mehta made post

What is your trade view for Friday 05 February 2021? Do you see profit booking being the last day of trading for the week?

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diksha shah answered.
4 weeks ago
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On Thursday, the start to the market may have been extremely tentative and volatile but the indices closed with very strong gains. Interestingly, since the budget, the Sensex has rallied more than 4,000 points and is just short of 51,000. Even the Nifty is now less than 200 points short of 15,000. These are the levels to really watch out for.

On Thursday, it was once again the banks that led the rally, chief among them being SBI. The bank gave a good set of quarterly numbers, especially on the gross NPA front even as NIMs showed improvement. Apart from banks, oil managed to gain on the back of strong crude prices as US showed supply pressures with restriction on fracking on Federal lands.

FPIs have infused most of their outflows and more. On Thursday, they were net buyers to the tune of Rs.1,937 crore while DFIs sold Rs.769 crore. Most of the money that went out ahead of the Budget has come back as the budget appeared to have been much braver than anticipated and also set out a very clear time table for the road ahead.

After a brief lull on Wednesday, the liquidity driven rally returned to the US markets as both the Dow and the NASDAQ ended up nearly 1% higher. On the European markets front, the FTSE in UK was flat while the other European markets gained 100 bps. The benchmark SGX Nifty is tentative in early trades but the undertone remains sharply higher.

On your query on profit booking, you can look for some weekend caution in the markets but the current undertone post the budget is once again very positive and that looks unlikely to change in a hurry. You must ideally continue to remain long in this market and use every dip to accumulate quality stocks that are direct beneficiaries of the Union Budget.
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