US stimulus likely to impact markets next week
The equity market witnessed a broad-based rally, for most part of the week, across segments and sectors
image for illustrative purpose
Mumbai: The equity market witnessed a broad-based rally, for most part of the week, across segments and sectors. The rally has been possible due to the enhanced prospects of stronger economic rebound, the higher probability of better earnings from the third quarter, and also the prospects of covering a large segment of the population with the new vaccine etc.
One of the factors that added to the positive bias has been the clarity on the new administration taking over in the US by January 20, the path for which has been now cleared by the US Congress. The market draws its strength from the relatively better economic fundamentals, resulting from the easy liquidity conditions and the accommodative stance of fiscal and monetary policy. "Any challenges to the sustainability of the economic rebound would pose a problem for the markets," says Joseph Thomas, head of research, Emkay Wealth Management.
Market Indices closed on record high. The positive sentiments towards the economic recovery continue to grow amongst investors. The key factor of real-world demand will be the efficacies of vaccine roll out globally. On the other hand, the increasing FII inflows in India are adding support towards the market uptrend. "In coming days, we will observe that US stimulus package will be a key factor in impacting the markets directly as world has grown more correlated than ever," said Ashis Biswas, Head of Technical Research, CapitalVia.
Stock Picks
♥ TORRENT POWER_Above 345 with a target of 360 and Stop loss of 335. It has formed a cup and handle formation.
♥ BAJAJAUTO_Above 3550 with a target of 3590 and Stop loss of 3510. It has a support of 21 and 40 DMA.
♥ HCLTECH_Above 1005 with a target of 1025 and Stop loss of 995. It has given a major level breakout and is expected to further continue the rally.
♥ ADANIENT_Above 527 with a target of 540 and Stop loss of 514. It is trading in an upward trending channel.
♥ BALKRISHNA INDUSTRIES_Above 1735 with a target of 1780 and Stop loss of 1700. It has formed a support of 55 DMA and has reversed from the same. (Source-CapitalVia)
