Will the stock market set a new record this year?

K. ARAVIND

Investors are watching to see if the stock market will set a new record by the end of 2020. The stock market started trading on a black Monday but last week saw strong gains in the following days. The main factor behind this upswing is the fact that there is an unlimited supply of money in the market that can ignore even the biggest negative news.

The discovery of a new variant of the corona virus in the United Kingdom has raised concerns that the pandemic may intensify again, leading to a sharp drop in the market on Monday. British Prime Minister Boris Johnson has again announced a lockdown, raising concerns. At the same time, the market rebounded for the third day in a row after investors came out to buy stocks in all sectors for the third day in a row. IT and pharma stocks were the top performers.

Cash flow returned to the market after Monday’s panic sale. Overcoming the concerns raised by COVID’s new variant, the market has once again risen to the top on the strength of cash flow. The stock closed at 13,749 points last week. This is close to the all time high.

Shares of Mrs. Bectors Food Specialties went into the upper circuit last week after being listed at a high premium. Upper circuit is the maximum number of shares that can be raised in a day. Becketers Foods Specialties listed its shares at a premium of 74 per cent. The IPO of Becker’s Food Specialties received a very good response. The issue price was Rs,288. The most-subscribed IPO this year is that of Bectors Foods.

If the Nifty rises above its all-time high of 13,770 next week, the next resistance will be 14,000. There are supports at 13,600 and 13,200.