NIFTY ON UPWARD TREND

The National Stock Exchange (Nifty) opened at 11185.70 and went upto 11256.80 and finally closed at 11200.15 rising 98.50 point.  The Nifty Bank rose by 132.65 points in today's session reflecting good financial position of domestic banking sector even though the status of NPA is expected rise upto 15% till end of the FY2020-2021.


High fluctuation from upward to downward and again downward to upward in the previous sessions shows strong financial stability in the stock market apart from lack of confidence. 


Stock markets are primarily driven by institutional money such as Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) account for the bulk of the liquidity in the market. Tracking their inflows and outflows helps predicting the broader trends in the market. Historicaly, FIIs have had a greater influence on the domestic markets. However, recent exodus of FIIs has partially been offset by the sustained flow from DIIs.


The process of unlock is in progress leading to strong financial stability in anticipation.  The continuous rise in inflation rate is also a cause of concern alongwith lack of liquidity in the market.  RBI is also expected to further cut down repo rate and reverse repo rate @0.25%, in order to boost liquidity in the market.


It is also imperative to note that the investment in gold and other commodity has substantially increased due to high volatility in the share market.

The stock market is expected to move on upward trend in the comming months upto the level of 11500 mark.


Comments

Popular posts from this blog

Gold (XAUUSD) Outlook Today – Updated Forecast (March 2026)

GBP (GBPUSD) Outlook Today – Grabbing Opportunity?

EURUSD Outlook Today – Advanced Forecast