(The basis of the discussion is based upon news available on 20.12.2020. So traders must take further analysis while taking stock position. OnlineTradeIndia.com do not take any responsibility if traders incur loss).
Nifty is trading with a positive biased and looking to touch 14000 level in near future. Global news flow is giving ample positive news with an expectation of $900 billion covid relief package that can be announced any time soon in US. This will enhance liquidity in the system and with low interest rate in develop nations can boost foreign inflow in emerging markets like India.
Another trigger for Indian stocks that can continue their uptrend due to FTSE’s Global Equity Index series rebalancing. This will lead to $700 million to $900 million of overseas inflow in Indian stocks and majorly in Nifty stocks like L&T, Asian Paints, TCS, Tata Steel, Bajaj Finance, Mahindra and Mahindra, Nestle India & NTPC. This can really boost the Nifty as these stocks are part of Nifty 50 Indices.
Another positive news is for Reliance that can further move up on the news related Reliance and BP announcement to start production in ultra deep water gas field in KG-D6 block odd the east coast of India. Only issue is Future & Amazon dispute on Future Retail bad for Reliance Retail. Incase this issue get cleared than we can see a handsome rally in the Reliance stock. Our technical view is positive for the stock. Have a look on Technical chart of Reliance:
The stock has a support near 1890 level to 1900 level and resistance at 2040- 2050 level, incase stock break this level than stock can move to 2100 level in near future. This stock has the potential to take the Nifty higher as recently the stock has proved to be laggard in the recent upmove.
Nifty Technical View for the Week
Nifty has recently broken flag pattern on upside in last week and also broken near resistance 13600 and presently trading at 13760. It has potential to move to 14000 level in near future with support at 13350 to 13400 level. Trade should be on long side presently. The outlook can change only on any set back related to covid relief package in US which is unlikely. Another trigger is vaccine news that can bring volatility in stock market.
Best of luck for this week trades!!!!