Tussle in between Bulls and Bears of Nifty 50 Continues
In a truncated week from 30’th Mar – 1’st Apr’21, Nifty closed at 14867. It is above the 20 day MA of 14820-14850 zone. It did the same on 30 Mar too but then the selling at higher levels dragged it lower. The important point to note is that bulls are still not giving up and every low has turned out to be a buying opportunity in last one year. The tussle in between bulls and bears of Nifty 50 continues.
With rising dollar index above 93 and US 10-year bond yields at 1.7%, I guess the market still wants to bet on earnings and inch up.
Our all-time highs on Nifty was closer to 15400-15500 levels.
With several attempts that were taken by market to cross all-time highs in last few weeks have failed, we are continuously making lower lows and lower highs.
Let’s wait and see the direction of index next week, when we will have full 5 days available.
Looking at fading momentum on the up side and various indicators like:
- USDINR testing its resistance of 73.5-73.8 where in the expectation was of lower levels earlier.
- Rising Covid cases and fresh stricter lockdowns.
- Slower pace of vaccination.
- Margins getting impacted because of high inflation.
It will be a cautious watch and next strategy and action should be taken after watching certain key levels like 15100 on the upside and 14250 on lower side.
On a long-term basis, we are in a bull market in India but looking at the short term, we can be due for some correction.
As it will be a result season and month in April, earnings and valuation based Buy/Sell calls can be taken for long term investment.