For the weekend 18th Dec'20-Friday... Updated on 13.12.20, Sunday-09.40 pm

Last week Nifty trend: Nifty Index as expected and written last week, opened with positive note at 13264.85, our expected opening band i.e., 13280-13310-13325, made a low 13241.95 on the opening day thereafter, it moved up till 13548.90 on Thursday, further it  witnessed a minor sell-off till 13399, the Index once again moved up till 13579.35 on Friday and closed the week at 13513.85 with a weekly gain by 255.30 points i.e., 1.93%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 14th Dec'20, on a positive note, subject to the Asian market move, to test 13560-13600, if open and sustain above 13600 then, the Index may try to test 13685-13720-13770-13805-13850 levels. On the other hand, the immediate support lies at 13300-13145, any further weakness below 13145 then, the Index may re-visit 13070-12960-12885-12790-12770-12730-12610 levels.

Key Events: The coming week, no major key events are expected on the Global front as well as on the domestic front, the India Inc. quarterly results for the remaining corporate companies are awaited, so, far, on the total of 4248 companies, 3611 companies were declared their Q2 results, they made a net profit 386.60% when compared with the Q1 net profit on QoQ basis and YoY basis the net profit also moved to 495.90% from the same period last year i.e., Sep'19, though the net profit numbers shows the tremendous growth, but the Sales/Income are not seen the major turnaround, when compared with the last year Sep'19, we should wait and watch the remaining corporate companies results, in the ensuing days. The price valuation i.e,, Price Earnings ratio-PE, last week has peaked 37.16 times on Friday, when compared to last week, it was 36.46 times. 

Special Mention: Last week, the Nifty Index tested the thershold resistance level 13560 and moved up till 13579.35, due to the FIIs buying spree in the Indian Equity market, which helped the Nifty Index to made a new all time high i.,e 13579 levels and closed well above 13145 for the second consecutive weeks, which shows the bullish tone and seems it may test 13770 by this week. At the same time, any weakness now only at 13300-13145, if breaks these levels and closes below 13145, then the sell-off may drag the Index till 12790-12600 levels in the near term. Let see, how it opens on Monday, whether it breaks 13560-13600 levels or not. We are witnessing a massive liquidity injection globally. Central bankers are pumping in money at a mind-boggling rate of $1bn+ every hour. Interest rates have been lowered, with a solemn promise to keep them subdued, till as long as required. These optimism, taking the global stock markets to the new highs..It looks, the Sensex could test 50k mark.. just 3700 points away for this level and Nifty Index also may test 15k mark, it may happen Jan-Mar 2021. The Nifty Index must break, sustains and closes above 13770 levels for three consecutive weeks to test 15k mark, but before that a meaningful correction to test till 12790-12600 levels, is a must and also, healthy too, for the Nifty Index.

Sector wise performance: Last week, almost all the major sectoral Indices were traded on the positive bias and closed in green, except the Nifty Auto and Nifty Metal: The Nifty FMCG lead the weekly gain by 6.21% followed by, Nifty Realty gained 3.32%, Nifty Bank gained 1.84%, Nifty Energy gained 1.60%, Nifty Bank gained 1.50% and Nifty Pharma marginally gained by 0.10%. On the other hand, Nifty Auto lost by -1.22% and Nifty Metal lost by -0.48%. Nifty small cap Index closed on a positive note with weekly gain by 1.86% and Nifty Midcap Index closed with weekly gain by 1.19%. Watch, the Banking segment, there may be further up move possible in tbe Nifty Bank since, the banks are trading with lower valuation. the Nifty Bank Index previous all time level lies at 32613.10, now it has moved till 30800 levels, another 1800 points, up move is possible to re-test the all time high.

Institutional Investors trading data: The Foreign Institutional Investors-FII's last week continued as a net buyer in the Equity segment, they bought to the tune of Rs.13,721.90 crores on the net basis whereas, the Domestic Institutional Investors-DII's, continued as a net seller, they sold all the days during last week, to the tune of Rs.12,535.34 crores on the net basis, as per the data forwarded to the SEBI, the FIIs continued the inflow all the days in last week, in to the Indian equity market, we should wait and watch, how they behave coming week.

USD Vs INR: The USD Vs INR depreciated from the weekly high level i.e.,$73.96 and moved down till $73.52, closed on Friday at $73.74, now further appreciation is depends on breaking above 73.96-74.19 on the upper side then, it may test $74.47-74.58-74.69-74.82-74.95 levels. On the other hand, it looks the USD Vs INR may take support this week at $73-52-73.40, any weakness below $73.40, it may try to test $73.10-72.97-72.84-72-71 levels. 

Tading Strategy: The Investor/trader, those who Invested at 11500 levels, book profit 13560-13770 levels and wait for further crorrection, to re-invest i.e, adopt Buy on dips strategy, if Nifty Index test 12770-12400 levels, to trade for a short term gains with medium term perspective, rather to wait for the long term basis.

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