Stock market unable to break through pressure point

K. ARAVIND

The stock market got off to a good start last week but was under selling pressure in the days that followed. Last week, the Nifty failed to break the pressure of 11,300 points.

 The decline was mainly due to selling pressure on Reliance Industries. If Reliance had earlier played a major role in driving the market, the market also fell on selling pressure on the stock. Apart from this, selling pressure on private banking stocks also strengthened. The decline in high-weight stocks like HDFC Bank was also reflected in the Nifty.

 August is generally a month of strong fluctuations. That can be expected this time too. Public sector banks are likely to support the stock market. SBI is the only high weighted stock among public sector banks.

 Private banking stocks helped the market during selling pressure

Last week saw major stocks in the Pharma and IT stocks sectors hit 52-week new highs. On Friday alone, the Nifty Pharma index rose more than three per cent.

The volatility is likely to be stronger next week.  The Nifty is supported at 10,800. There is also strong pressure at 11,377 points. Only when these levels are exceeded will the market move to the next level of ups and downs. It is possible to trade within a certain level until it is overcome.

Factors affecting the market are high number of COVID-19 patients and floods. At the same time, the rapid trial of the vaccine against COVID-19 and the liquidity are positive factors for the market.