Market Update 30. 03. 2021

What have we learned so far in 2021? Simple: The relentless liquidity machine remains in full control. In addition to renewed and larger fiscal stimulus central bankers, including the Fed, have made it abundantly clear they will keep printing no matter what the data shows, no matter how much inflation there is (“let it run hot”).

April is a 5 week series. Also corporate results will start pouring in from second week of April. There are 4 public holidays in April. So effectively there are 21 trading sessions. Banknifty has been on quite a volatile declining range. As seen in above chart the index has experienced a good last hour buying taking support on the 150MA and 200MA.

A possible breakout would be worth trading next week.

Markets are likely to go all over the places again. Usually when a down trend starts, it lasts between 8 weeks and 12 weeks. Bond yield stable around 1.674 but really wonder for how long. The problem for the market remains lack of FII buying. Conviction in long trades missing due to muted FII data. As covid wave surges, pharma will emerge as a theme again

Pharma Index 11% off highs, trades near 200MA.