Key factors that may impact the Market, Nifty & Banknifty share price target for (28 Dec to 1st Jan 21)

 

Nifty & Banknifty share price target for ( 28 Dec to 1st Jan 21): Indian stock markets closed almost flat on a weekly basis. The markets declined on the first day of the week due to a new strain of coronavirus cases in the UK and its restrictions. The markets then recovered with the support of strong buying by the FIIs and positive global markets. In the coming week, most of the global markets will be in a new year mood whereas the Indian markets may see some volatility due to the F&O monthly expiry on Thursday.

The factors that may impact the Indian stock market/ Nifty and Banknifty share price for the week (28 Dec to 1st Jan)

 

A new strain of Coronavirus risk

 

India continues to see a decline in coronavirus cases in the last two months. The announcement of a new strain of coronavirus risk by the UK has created a panic among investors in the market last Monday. More than 40 plus countries banned cross-border travel from the UK. Investors were worried about the fresh lockdown in London and its impact on global economic recovery.

However, the new strains of the virus are restricted to the UK only. But one cannot rule out the possibility of the new viral strain transmitting to other countries through travelers. Japan has ban entry from other countries as precautionary measures to prevent the spread of the more contagious UK strains of the coronavirus. Investors should closely follow the strain of coronavirus cases related news for the next week as the spread of new strain can create a negative impact on the market.

 

Vaccine updates

 

After Pfizer-BoiNTech emergency use of the vaccine in the UK, many other countries like the US, Saudi Arabia, Canada, Bahrain have also approved for emergency usage. In India, there are three candidates Oxford/AstraZeneca, Pfizer Inc, and Indian company Bharat Biotech applied for emergency use authorization for their covid vaccine. 

Bharat Biotec’s Covid-19 vaccine ‘Covaxin’ is in phase 3 trials and Pfizer is yet to make a presentation, India may go with ‘Covishield’ the Oxford one for the immediate roll-out. The central government has planned for a dry run of Covid-19 vaccine in four states- Assam, Andhra Pradesh, Gujarat, and Punjab, which will take place on December 28 and 29 ahead of actual implementation whenever the vaccine gets finalized.

In the coming week, India may finalize the Covid-19 candidates to be rolled out first and the tentative date of its first use. Traders must follow the news closely as the market may take the news positively. 

 

Nifty and Banknifty futures share price target for the week (28Dec- 1st Jan)

 

Nifty futures share price target for the week ( 28 Dec to 1st Jan)

Primary Trend of Nifty futures for the week: Positive

Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 13870 whereas All Down Moves Initiates Short Covering (Buy) @ 13700

If Nifty share price in futures Moves Above 13785 and sustain. Then you should Buy with 1st Target of 13816 during the day or week with a Stop Loss of 13725 FOR the Target of 13816- 13845- 13872- 13940

Suppose Nifty share price in futures Moves Below 13725 and sustain. Then you should Sell with the 1st Target of 13702 during the day or week with a Stop Loss of 13785. FOR the Target of 13702- 13670- 13630 -13565

 

Banknifty futures share price target for the week ( 28 Dec to 1st Jan)

Primary Trend of Banknifty future for the week: Positive

Range-Bound Trend of Banknifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 30900, whereas All Down Moves Initiates Short Covering (Buy) @ 30200

If Banknifty share price in the futures Moves Above 30520 and sustain. Then you should Buy with the 1st Target of 30650 during the day with a Stop Loss of  30325. FOR the Target of 30650 – 30890- 31170- 31450

If Banknifty shares price in the future Moves Below 30325 and sustained. Then you should Sell with the 1st Target of 30220 during the day with a Stop Loss of 30520. FOR the Target of 30220- 30103- 29940 – 29780

 

Post-Brexit Trade Deal

 

After negotiations for about 9 months, the UK has finally struck the post-Brexit trade deal on 24th December. The trade agreement contains provisions on several subjects including nuclear energy, fishing, aviation, and medicine. The global markets may react to this news on Monday, the news may impact positively on the stock market.

 

Global market cues

 

Next week, the global markets will be in a holiday mood due to the New Year celebration. There is no important macroeconomic data lined up in the coming week except for Japan’s Industrial production and China’s NBS PMI data. On Monday the global market will first react to the Post-Brexit Trade deal. 

The markets may trade cautiously next week due to the new strain of coronavirus cases in the UK. The coming week will have three trading days only. Most of the global markets will have holidays on 31st December and 1st January due to the new year celebration.

 

FII & DIIs investment

 

On a weekly and monthly basis, FIIs were the buyers and DIIs were the seller in the cash market segments. FIIs bought Rs 14398.16 crores in the cash market. The DIIs sold almost the same amount Rs 14425.55 crores in the cash market segment during the week ended 24 December.

 

Auto Sales

 

The December month Auto sales numbers will be reported on the first of January 21. Auto companies will be in focus at the end of the week due to the announcement of sales numbers. After the sales during the festive season, we may see a slight dip in Auto Sales number particularly in the Passenger Vehicles and Two-wheeler segments. Traders should trade cautiously in automobile sectors ahead of the auto sales numbers.

 

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Happy Investing!!

Editor’s Desk

 

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