The stock market has been rising over the past week. The market is on a six-day high. Despite witnessing new heights every day, the market in general was volatile. The Nifty moved between 13,500 and 13,800 points.
The market was supported by cash inflows and global signals from foreign investors. The possibility of a US stimulus package and the hope that the vaccine will help prevent the epidemic gave investors more confidence. At the same time, the increase in the number of patients in the US and Europe, the possibility of Brexit without a contract and the peasant uprising in Delhi are adverse factors.
Last week, the IT and pharma sectors were the main contributors to the market. IT stocks rebounded on the last day of the week. The global IT giant Accenture has released a very good quarterly result, which has led to a rise in IT stocks. Accenture is expected to post better-than-expected revenue growth in the current financial year. The company expects revenue growth of between 4% and 6 per cent in the current financial year. Earlier it was between two per cent and five per cent.
Leading IT company TCS began the process of repurchasing shares from investors. The repurchased floor price is fixed at Rs.3,000 per share. A maximum of Rs.16,000 crore is being spent on repurchasing TCS shares. The buyback offer ends on January 1.
Banking stocks continued to fluctuate as stock indices soared last week. Nifty Banking Index, which has been the major bank in the Nifty for the past few weeks, did not show any significant improvement last week.
Last week, the Nifty traded between 13,500 and 13,800. The Nifty has the next resistance at 14,000 points. It has support at 13,200 and 13,000. The market is likely to continue to fluctuate. It is advisable for investors to approach the market with caution.
Shares of Aarti Industries, Dr Lal Path Labs and HDFC AMC were added to the NSE Futures and Options trades. These shares will also be included in the January derivative contracts. This brings the total number of shares available for futures and options trading to 140.
