Will bulls express halt as its upmove? Level 13,400 becomes crucial support for Nifty!

Sensex and Nifty on Wednesday achieved one more landmark as both, for the first time ever, managed to close above the 13,500 and 46,000 levels. Interestingly, in just the last three trading sessions, Sensex has moved 1,000-points from the 45,000 mark to 46,000 mark. The foreign portfolio investors, after a historic inflow of more than Rs 65,000 crore in the month of November, continued their buying spree as the month till date, they have invested Rs 20,472 crore.   

However, on Thursday, the bulls are likely to take a pause as the global cues are negative and SGX Nifty is indicating a fall of 58 points at the opening bell in Nifty. It would be interesting to see whether the market participants grab this initial dip as a buying opportunity like they have done in recent times and would the foreign portfolio investors also latch on to this opportunity and keep markets afloat or not. We do believe this dip will have takers as long as Nifty sustains above the 13,400 mark.

Asian markets turned jittery on Thursday as no decisive breakthrough on the stimulus package in the US turned investors’ sentiment sour. Japan’s Nikkei 225 and Hong Kong’s Hang Seng were down by 0.33 per cent and 0.35 per cent, respectively while China’s Shanghai Composite was hovering around the neutral line.

The US stocks reversed their early gains and ended the day in negative terrain on Wednesday. The early optimism on Wall Street was seen on the back of the hopes of fiscal stimulus; however, as the day progressed, optimism faded as no concrete development was seen on the fiscal stimulus front. Further, a rise in the Coronavirus cases dragged the markets.  

On the economic front, the speed of job openings enhanced for the second month in a row. Amongst three main stock indices on Wall Street, the tech-heavy Nasdaq was the worst-affected as it plunged nearly 2 per cent to 12,339. Facebook, Amazon, Apple, Netflix & Google (FAANG) stocks were seen under selling pressure and Tesla also plunged nearly 7 per cent. Meanwhile, the stocks in the European region had a wonderful outing as positive news flow related to the pandemic stimulus package kept the mood buoyant.