The past week saw the stock market moving within a limit area. Even though the Nifty rose 10,553 points booking of profits was witnessed.
Banking stocks saw strong volatility but at the same time auto and IT sectors aided the market. More than a fight between the bulls and the bears, we can see availability of funds coming face to face with the drawbacks in the economy. As the bulls take the market forward, we see booking of profits in view of better global indications.
These days, the Indian market is following the lead of the US market. The unhindered rise in the number of COVID-19 patients and deaths in the United States in recent days led to the volatility in the markets.
The indications that there would be a heavy monsoon this year is aiding the domestic market. The heavy monsoon would lead to better output from the agriculture sector and the growth of the rural economy. The rural economy has been showing good signs of a revival. The demand from the rural sector has improved. At the same time, there is no respite from the fear of worsening COVID-19 situation globally and the number of COIVD patients rising domestically are negative factors.
There is a lot of pressure on the Nifty at 10,550 points. Even though the bulls have taken the market to 10,550 points, global pressure for selling it could not break this barrier
Nifty would be moving in the range of 9,500 and 10,550 in the coming week. It would be healthy for the economy to hold on to this range than a rapid rise owing to liquidity.
As the liquidity is strong it would take some more time for the market to take into account the basic factors. If the Nifty rises depending on the availability of funds, a negative news would lead to a crash in the market.