K. ARAVIND
The bull-dominated stock market has entered the New Year with the question of how high it will go. The Sensex is expected to cross 50,000 points in 2021, according to various brokerages and analysts. The Nifty is likely to cross 15,500 points.
The availability of the vaccine and the expectation that the economy will recover faster than expected are behind the stock market’s dream-like leap forward in 2020. At the same time, the stock market is likely to undergo a major overhaul vaccine does not work against the new variant of the corona virus.
The continued investment of foreign investors has led the Indian stock market to new heights. In December alone, foreign investors invested Rs.55,937 crore in the Indian stock market.
Last year, the stock market surged to an all-time high, but mutual funds continued to sell for most of the year. Mutual funds made net investments for five months from January to May 2020, but continued to sell for seven consecutive months from June to December. Mutual funds have been selling off stocks for months.
According to the Central Government, FDI inflows into India have increased significantly during the epidemic. During the April-October period, foreign direct investment (FDI) grew by 21 per cent. Foreign investment in India reached $ 3.53 billion during the period. Investment during the same period last year was $ 2931 billion. It is hoped that this will benefit the economy.
According to technical analysis, the Nifty has the next highest resistance at 14,370. It has support at 13,800 and 13,600.
