InvestorQ : What is your trading view for Monday, 04 January 2021?
Khushi Patel made post

What is your trading view for Monday, 04 January 2021?

diksha shah answered.
2 years ago

If you look at the markets on Friday, both the indices have been poised quite delicately. The Nifty closed above 14,000 for the first time in its entire history while the Sensex just stopped short of the 48,000 levels. The big test in the next few days will be whether the Nifty can sustain above 14,000 levels and Sensex can decisively breach the 48,000 mark.

The big story to watch for on Monday and during the week is the progress on the war against COVID. The DCGI has approved two vaccines; Covishield by Astra-Zeneca and the Covaxin by Bharat Biotech. The latter is indigenously developed vaccine while Covishield is marketed by Serum Institute. The COVID recovery rate has also improved.

After a hectic November and December, it remains to be seen how FPIs behave in January 2021. They were net buyers worth Rs.506 crore while DFIs sold Rs.69 crore on 01 January 2021, Friday. FPIs had already infused a record Rs.138,000 crore into Indian markets in November and December of which Rs.125,000 crore was pumped into stocks.

Global cues have been rather mixed on Friday and Monday could provide better direction. Dow and the NASDAQ were up 60-70 basis points on Friday, but most European markets ended lower on fears of rising COVID cases and questions over the BREXIT deal. SGX Nifty is 70 bps higher in early trades and the COVID war could hold the key.

I must add here that the market is at a very critical phase. The two big triggers for the market are now the rollout of the vaccine across India and the third quarter results which will start with TCS on 08 January. If Q3 can maintain the momentum of Q2, then it will be icing on the cake for the markets.