Wall Street surges to welcome Joe Biden, Asian peers follow; will Sensex, Nifty mirror the trend?

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Updated: Jan 21, 2021 8:03 AM

Wall Street was cheering the 46th President of The United States, as equity indices surged during the day’s trade.

Stock Market UpdateFor Thursday, SGX Nifty was trading 69 points higher, hinting at a gap up start.

Domestic equity markets continued to climb higher on Wednesday, this time reach fresh all-time highs. S&P BSE Sensex now sits at 49,792 points while the broader Nifty 50 index was at 14,644. For Thursday, SGX Nifty was trading 52 points higher, hinting at a continuation of the trend of the last two days. On Wednesday, Wall Street was cheering the 46th President of The United States, as equity indices surged during the day’s trade. The same positive momentum was carried on to Asian markets.

Global watch: On Wednesday, NASDAQ zoomed 1.97%, followed by a 1.39% jump in S&P 500 and a 0.83% rise in Dow Jones as Wall Street welcomed the new US President. The bullish momentum was carried on to Asian markets as well with Shanghai Composite, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all up in the green. Hang Seng was trading with losses.

What do the charts say: Nifty has now gained for two consecutive sessions and has managed to reach a fresh all-time high. “Another long bull candle was formed, which indicate an uptrend continuation pattern. The previous four sessions decline has been retraced completely in the last two session. This faster retracement could signal further upside in the short term,” said Nagaraj Shetti, Technical Research  Analyst, HDFC Securities.

Also Read: Rakesh Jhunjhunwala effect: Wockhardt shares jump 6% as big bull emerges among major shareholders

Support and resistance levels: Equity benchmarks could surge to reach record highs once again, analysts believe. ”Even if the market does not hold at a high level, we can expect a rally in the best case scenario up to 14750/50000 and up to 14850/50500,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities while warning of volatility ahead of the Union Budget. Chouhan advised investors to buy on dips between 14550-14500/49600-49500.

FII and DII data: Foreign Institutional Investors (FII) were net buyers of domestic securities on Wednesday, once again. Data showed FIIs pumped in Rs 2,289 crore into domestic markets. However, FIIs were net sellers on index futures & options along with stock futures & options. DIIs continued to be net sellers.

Results today: Aavas Financiers, Asian Paints, Bajaj Auto, Bajaj Holdings & Investment Limited, Bandhan Bank, Biocon, Cyient Limited, Indian Energy Exchange, IIFL Securities, Jindal Steel & Power, JK Tyre and Industries, Kajaria Ceramics, Mphasis, Nam Industries, Reliance Power, SBI Cards and Payment Services are among the firms that will report their quarterly results today.

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