Markets Remained Range-bound; Buying Pressure in Mid-Small Cap

During the previous week, both the benchmark indices, Nifty and Sensex witnessed a highly volatile session, ending the weekly session in red. Nifty and Sensex traded in the range of 14,459 and 14,882, and 48,580 and 50,092 respectively. During the week, bulls tried to take control of the market, but failed to do so.

The equity markets witnessed a weakened investor sentiments due to continuation in rising COVID-19 cases throughout the world, and especially due to a higher pace of rise in the number of cases in India. Stringent lockdown rules have been announced by the state governments, whereas, lockdown period has been extended for the states which were already experiencing lockdown and night curfew. This has weakened the investors’ sentiments.

However, the investor sentiments were boosted on Wednesday, after the announcement of RBI Policy, where the bank rates have been kept unchanged, as a remedy to revive the economy of the country by the way of liquidity infusion. The MPC committee has been keeping the rates unchanged since past 5 meetings. Bank Nifty welcomed the Policy outcome with open arms.

As far as sectoral indices are concerned, Nifty IT, Nifty Metal and Nifty Pharma stocks ended in green during the week, gaining more than 2% each, whereas, all the other sectoral indices ended the week in red. Nifty Private Bank, Nifty PSU Bank, Nifty Media and Nifty Financial Services were the worst performers of the week, losing more than 2% each.

For the upcoming week, the equity markets are expected to react on the new lockdown rules announced by the government and the change in number of COVID-19 cases. If the cases do not subside, the rules might get more stringent and have a negative effect on the equity market. Technically, for Nifty, 14,880 will be a critical level for the week. It should sustain above that level to confirm its bullish trend. On the upper side, it might see 15,300 levels. If it falls below 14,880, we might see it falling to 14,389.

Page 8, NavGujarat Samay, 9th April’21

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