For the weekend 24th Dec'20-Thursday... Updated on 20.12.20, Sunday-09.45 pm

Last week Nifty trend: Nifty Index as expected and written last week, opened with positive note at 13571.45, our expected opening band i.e., 13560-13600, made a high 13597.50 on the opening day thereafter, on Tuesday, the consolidation move dragged and made a weekly low 13447.05, further it moved up till our threshold target level 13770, made a weekly high 13773.25 on Thursday, further the weakness at 13770, dragged down till 13658.60 on Friday and closed the week at 13760.55 with a weekly gain by 246.70 points i.e., 1.83%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 21st Dec'20, on flat to negative note, subject to the Asian market move, to test 13727-13700, if open and sustain below 13700 then, the Index may try to test 13660-13610-13560-13510-13450-13375-13295 levels. On the other hand, the immediate resistance seen 13770-13830, any further upmove above 13830 then, the Index may test 13900-13965-14040 levels.

Key Events: The coming week, no major key events are expected on the Global front. the much awaited US further stimulus measures announcemnet to revive therir economy, yet to come,  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, 3754 companies were declared their Q2 results, they made a net profit 390.40% when compared with the Q1 net profit on QoQ basis and YoY basis the net profit also moved to 492.10% 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 37.84 times on Friday, when compared to last week, it was 37.16 times. 

Special Mention: Last week, the Nifty Index successfully tested our long awaited thershold target levels i.e., 13770, , due to the FIIs buying spree in the Indian Equity market, in last 7 straight consecutive weeks, the Nifty Index closed with posiitive bias, made a new all time high every week, it looks the Index may consolidate with range bound move between 13800-13400 this week, any further direction either upside or downside is depends on breaking either of these ranges, if the Index moves and closes above 13770, three consecutive trading sessions coupled with a weekly close, may lift the Nifty Indedx till 14k-15k levels. On the other hand, now any weakness only below 13450, if the Index breaks, sustains and closes below 13450 then, it may test 13145-12900-12790 levels very soon. It looks, the Sensex could test 50k mark.. just 3000 points away for this level and Nifty Index also may test 15k mark, it may happen Jan-Mar 2021, but before that a meaningful correction to test till 13145-12790 levels, is a must and also, healthy too, for the Nifty Index. The Santa claus rally already happened this year very early across the global markets, hence there may be a profit booking possible, mostly in December the Indian stock market may trade in sub-dued movement, without much of volume, even to test any higher levels, it will trade with a gap up's, I am witnessing this since 2005 and difficult to predict the trend reversal, the clear trend may emerge from Jan'2021, let us wait and watch.

Sector wise performance: Last week, almost all the major sectoral Indices were traded on the positive bias and closed in green, except the Nifty FMCG & Nifty Auto: The Nifty Realty lead the weekly gain by 3.85% followed by, Nifty Pharma gained 3.21%, Nifty IT gained 2.71%, Nifty Metal gained 2.24% and Nifty Bank & Nifty Energy maginally gained 0.36% & 0.16%, respectively. On the other hand, Nifty FMCG lost marginally by -0.76% and Nifty Auto lost by -0.22%. Nifty small cap Index closed on a positive note with weekly gain by 1.96% and Nifty Midcap Index closed with weekly gain by 1.76%. 

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.11,806.34 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.11,025.32 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.,$73.88 and moved down till $73.39, closed on Friday at $73.60, the USD Vs. as written & expected made a low near our support levels .e., 73.40, now further weakness is depends on breaking below 73.39 on the down side then, it may test $73.24-73.11-72.97-72.71 levels. On the other hand, the USD Vs.INR, may test $73.64-73.88, this week, if moves further above $73.88, may re-test $74.04-74.19-74.26-74.37 levels in the near term. 

Tading Strategy: The Investor/trader, those who Invested at 11500 levels, book profit 13770 levels and wait for further crorrection, to re-invest i.e, adopt Buy on dips strategy, if Nifty Index test 13150-12790 levels, to trade for a short term gains with medium term perspective, rather to wait for the long term basis.

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Wishing you for a safe and secured with profitable trading.