Key factors that will influence Nifty and Bank Nifty futures next week (7-11 Dec 2020)

 

Nifty & Bank Nifty futures (7-11 Dec 2020): Indian markets gained last week with the help of better than expected GDP data, Vaccine news, and FIIs investment. Markets have ignored a slight dip in PMI data as overall market sentiments both on the domestic and global front was positive. You can read last week’s market updates here.

The benchmark indices Nifty and Sensex closed at a record high last Friday. Going ahead market would trade in a positive trend but we could see some consolidation or volatility in the next week.

 

The key factor that will influence Nifty, Bank Nifty futures next week (7-11 Dec)

Coronavirus risk and vaccine updates

Coronavirus infection in India is declining and it helped to uplift the market sentiments last week. The active coronavirus cases in India dropped below 4.10 lakhs on Saturday, its lowest count in 137 days. The overall fatalities from the virus are around 1.40 Lakhs while the recovery rate jumped to 94.20% this week as against 93.70 in the previous week.

The infection cases continue to increase in the US, Japan, and European countries. Globally there are more than 6.67 crore people infected in coronavirus cases so far with 15.34 lakh deaths.

On the vaccine front, its progress and trial effectiveness results boosted the market sentiments for quite some time. Last week Pfizer and BioNtech’s coronavirus vaccine got the UK government’s approval for emergency use in the country has lifted the global market sentiments. The American firm Moderna signed a deal of 100 million doses of coronavirus vaccine with the United States.

On 4th December, Prime Minister Narendra Modi said that the country could get the first vaccine doses in the coming few weeks. PM Modi has also said that the vaccination drive to start soon in India as we get the go-ahead from the scientist. Vaccine news could be the key factor to influence the market next week and traders should closely watch out for the development on this front. 

Technical levels-Nifty, Bank Nifty futures prediction for the week (7- 11 Dec)

 

Nifty futures prediction for the week (7-11 Dec)

Primary Trend of Nifty futures for the week: Positive

Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 13450 whereas All Down Moves Initiates Short Covering (Buy) @ 13200

If Nifty share price in futures Moves Above 13328 and sustain. Then you should Buy with 1st Target of 13365 during the day or week with a Stop Loss of 13280 FOR the Target of 13365- 13386- 13407- 13470

Suppose Nifty share price in futures Moves Below 13280 and sustain. Then you should Sell with the 1st Target of 13258 during the day or week with a Stop Loss of 13328. FOR the Target of 13258- 13238- 13200 -13160

 

Bank Nifty futures prediction for the week (7-11 Dec)

Primary Trend of Bank Nifty future for the week: Positive

Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 30700, whereas All Down Moves Initiates Short Covering (Buy) @ 29050

If Bank Nifty share price in the futures Moves Above 30350 and sustain. Then you should Buy with the 1st Target of 30580 during the day with a Stop Loss of  29950. FOR the Target of 30580 – 30730- 30890- 31350

If Bank Nifty shares price in the future Moves Below 29950 and sustained. Then you should Sell with the 1st Target of 29805 during the day with a Stop Loss of 30350. FOR the Target of 29805- 29650- 29340 – 29040

Global market cues

We all know that a strong global market cue can easily boost the domestic market sentiments. The market sentiment in the US was positive in the last week due to new hopes on the coronavirus stimulus package. Next week traders need to watch out for the development on this front, it may boost the global market sentiment in the coming week. The global market direction also depends on various macroeconomic data that are going announced in the coming week as per the below schedule.

 

Important Global Macro Data Next Week
8th Dec	GDP Data	Japan
9th Dec	Inflation Rate	China
10th Dec	GDP Data	GB
	Core Inflation	US
	Jobless claim

 

FII & DIIs investment

FIIs are continuously buying in the cash market from May 2020 except for September month. The Nifty50 index has gained from 9300 in May 2020 to 13,250 in seven months period (approx). Nifty 50 gained almost 43% in the last seven months and we cannot ignore FIIs contributions for the Nifty touching a record high.

 In December 2020, so far in four days, FIIs bought Rs 10,206.36 crore while DIIs sold Rs 6090.52 crore in the cash market segment. As long as FIIs are buying in the cash market Indian stock market trend will be positive. Traders or Investors should keep track of FIIs investments closely to know the market trend.

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Editor’s Desk

 

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