NIFTY WEEKLY CHART
Why the stock market is going up?
This question arises in everyone's mind those are in the market or connected with the market.
As all of us know that the economy has not grown up and even the covid vaccine has not arrived yet, despite that why the stock market is going up?
However, if see closely then its clearly visible when the nifty was struggling so badly that time Pharma sector supported nifty & even also helped nifty to start trading to the upside because so many gigantic blue-chip pharma company stocks were busy in developing a vaccine, therefore they got immense fund flow from the government although they also got thumbs up by the FII & DII as well.
US stock market rallied because of US election chaos perhaps that also helped the Indian stock market through the FII fund flow, lets have a glimpse at the statistics:
IMAGE SOURCE: CNBC TV
Now after seeing these statistics you will get to know why the market is going up because the market got the immunity by the FII through the flow of funds that created an immense demand in the market.
Going forward, if you see the market on the basis of Techincal analysis then the Nifty weekly chart RSI has never breached its centerline @ 50 reading since July 2020 which clearly signifies the uptrend of the market, so as per my analysis I won't consider market will enter in a bearish zone until & unless Nifty RSI won't close below its centerline on the weekly chart.
Therefore, observe the price action & enjoy the uptrend till the time market is in uptrend & also try to book some profit at higher levels if you are a swing trader and YES! always ready for surprises because the market tends to give surprises.
On a closing note, something cooking in the Mineral & Mining sector will surely create a question in the future that WHY MINERAL & MINING SECTOR STOCKS ARE GOING UP? :)
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