The Indian market on Thursday logged a fresh record high, with the Nifty scaling Mount 14,000 for the first time ever, in the final trading session of the year 2020 ahead of the expiry of December series derivative contracts later in the day.
BSE Sensex was trading at its record high level of 47860.3, while the broader Nifty 50 index hit 14,009 points. In the opening deals today, Nifty was just shy of 14,000 and hit a fresh high of 13,997.85 level. Last month on November 24, Nifty 50 closed above the crucial 13,000 level for the first time ever at 13,055, while it breached the 13,000 level on the downside in the following week.
The broader Nifty 50 index reclaimed this crucial level on December 1, 2020, and since then it has been trading above the crucial level of 13,000. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, said that the Nifty is trading very close to the 14000 levels, if it can sustain above this on a closing basis, then it may go up further to levels closer to 14100-14150. “The overall market remains bullish with good support at the 13550-13600 zone,” said Manish Hathiramani.
So far this calendar year, both Sensex and Nifty have rallied 15 per cent despite coronavirus-induced volatility in the share markets across the world. Today, headline indices were seen trading volatile due to the monthly and quarterly expiry of F&O contracts. In the previous session, Nifty reached to 13,997 level while today it surpassed to scale an all-time high of 13,997.85. Seeing the current market scenario, Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, sees the short and medium-term trend of the market as positive with high volatility on cards.
It took Nifty 50 a little over a month to mount 14,000 from 13,000 levels. It may be noted that from the March lows of 7,511.10, the Nifty 50 index has rallied 83 per cent. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that it is hard to predict how the market will behave next year. Factors such as twists and turns in the pandemic, COVID-19 vaccine, recovery in growth and earnings, upcoming Union Budget, monetary policy, the monetary stance of the Fed, will influence and impact the stock market. “Investors may partially book some profit but remain invested in high-quality names, particularly in private sector banking, IT, telecom, pharma and consumer goods. In a market like this, it is important to continue with SIPs,” V K Vijayakumar said.
