K. ARAVIND
The stock market was very volatile last week. The main reason for this was the petition before the Supreme Court seeking the waiver of interest during the moratorium period. The apex court heard the petition on Thursday. In the days before that, banking stocks faced strong selling pressure. It also affected the overall market. Banking stocks, meanwhile, saw a relief gain on Thursday as the Supreme Court adjourned the hearing of the petition to September 28. Shares, which have been selling in recent days, rose on September 10 and 11.
The market has been gaining ground this week compared to the previous week’s closing, but it has been volatile throughout the week. At one point, the Nifty fell to below 11,200 points. The news that Amazon has been invited to invest in Reliance Retail and the Supreme Court postponing the moratorium case has helped the market to rise to this level. The market rose to close at 11,500 points on September 11.
The strongest support level for the market will be 11,377 points. If the market rises, there is little pressure at 11,550 points. If it surpasses this point the next strongest pressure point is at 11,800. If the market breaks the 11,377 point support level, the next strong support level is 10,800.
There are four main factors that will determine the success of the market. The most important thing the market is looking at is the petition before the Supreme Court seeking the waiver of interest during the moratorium period. The second factor is the border conflict between India and China. The third factor is that the UK company that developed the vaccine, AstraZeneca, has stopped testing it, raising concerns about the delay in its availability. The market is also worried that the Reserve Bank of India may have to resort to widespread buying of bonds to fill the country’s fiscal deficit.
Even though investors are interested in buying at the bottom level, the volume is low. With the introduction of the requirement for traders to mortgage securities directly in order to earn margins, the volume will be drastically reduced. There are also concerns in the market that this may take time to change. Although it is possible to move forward, investors need to approach the market with caution.
