3 Reasons Why Markets are Moving Sideways

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3 Reasons Why Markets are Moving Sideways

By Aditya Raghunath

Investing.com -- It was another day of volatility in the markets today. Nifty hit a high of 14,984 today before closing up 0.37% at 14,873, failing once again to conclusively break out over the 14,900 marks. The BSE Sensex hit a high of 50,118 before closing up 0.17% at 49,581. There are various factors at play that prevent the markets from breaking out:

  1. Rising COVID cases: The second wave of the pandemic has been very severe and India reported over 1.26 lakh cases on Wednesday. Complete or full lockdowns in multiple states have impacted the fragile economic recovery.
  2. Weakening rupee: The rupee has gotten weaker and will be in a range of Rs 74.50, as the government spends more on vaccines and health products due to COVID-19. However, a weak rupee is good news for IT stocks that earn a significant chunk of their revenues in dollars. There are good pickings in this space.
  3. Mixed global cues: US stocks closed almost unchanged yesterday after the Fed said it would continue its dovish stance. US market experts say that the coming quarter or more might see the market giving muted returns to investors. Dow Jones 30 Futures are trading flat while S&P 500 Futures and Nasdaq 100 Futures are up 0.32% and 0.86% respectively. 

The S&P and the Dow are on course for their third straight winning week, ahead of next week’s start of what is expected to be a very strong earnings season. According to data from Refinitiv, earnings for the first quarter of 2021 will see the strongest growth since the third quarter of 2018.

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  • shikhar sharma @shikhar sharma
    Future buy Kroger with June 14500 put mall mega.
    Like 0
  • satyabrata nayak @satyabrata nayak
    nifty will touch all time high
    Like 0
  • Madhu Surya @Madhu Surya
    You overlooked the persistent uncertainty of  assembly elections. the outcome is to influence  farm reforms and the proposed disinvestment bonanza.
    Like 0
  • Technical Gyan @Technical Gyan
    infy will be on focus
    Like 0
  • Krishna Solankar @Krishna Solankar
    Dont worry buy on deep up to april
    Like 0
  • Midhun Thomas @Midhun Thomas
    What about tmrw nifty 50
    Like 0
  • vijay kumar @vijay kumar
    Market will be +ve
    Like 0
  • NILESH DIYEWAR @NILESH DIYEWAR
    hows tomorrow market
    Like 0
  • NILESH DIYEWAR @NILESH DIYEWAR
    hows tomorrow market
    Like 0
  • Sarthak Dukare @Sarthak Dukare
    tcs target 1 week, 2 week, 3 week
    Like 0

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