Daily Forecast – Share Market – February 1st, 2021

Reversal from previous session possible | Volatility not surprising

New month of 2021 has started. Budget day for 2021-2022 will be placed in the floor of Parliament house. An important day for the business community and layman also. This may affect stock market also. This can be strong reason during the day to influence trading session.

Moon is leading with Sun and Mars, well supported by Venus and retrograde Mercury. In fact, Mercury has started transiting retrograde after the last trading session. So, importance of previous level of closing will be important, because chances of coming back to the same levels of Index is possible within coming fortnight or 18 days. Reversal movements from the previous levels also possible, hence we may see some recovery from the lower levels, but due to impact of Government announcements, chances of volatility can be seen during the day, because we can not ignore importance of lagna lord, that is government.

Volatility is again possible.

Keep a watch on Global events, budget, results of various companies. Also, consider value of those companies which could work from home during the lockdown, also essential supplies like medicine, FMCG, e-commerce and many more. Previous financial year had provided companies to clear maximum of blocked stocks, so they had recovered from blocked money. Additional charges earnings for the companies have improved in terms of COVID charges by many companies, this period has also supported small companies like box manufacturer or packaging industries (cottage also). This gave an additional demand for paper industries or Cardboard manufacturer.

Many industries have diversified their productions according to the requirement of market. Sugar mills have moved for alcohols for sanitizers, cottage industries for Masks, PPE kits and other non-traditional products. Companies have enjoyed advantage from employees, by deducting their salaries or retrenching them or reducing their costs, pressurizing employees to deliver more. Good for many segments, but tough for work force.

Banks have enjoyed advantage from RBI, Government and from their customers also. Many companies have enjoyed the advantage to remove their 24×7 call centre service for the customer support (including banks also).

Companies have got the advantage of saving their faces because of poor working year of 2019-20. Everything was marked in the name of COVID 19 and lockdown etc.

Now, improvement can be seen in infrastructure, automobile, logistics, IT, communication, Digital entertainment and likewise services including e-commerce etc. Banks may give opportunities at lower rates and avoid oversold stocks.

Defence, space, e-vehicles related, battery manufacturer, automobile tyres (advantage of checking on imported tyres – gap is big), Pharmacy for long term, healthcare, laboratories linked with healthcare, life saving products or safety products related to healthcare etc. may be looking charming in coming period.

Market may try to recover from lower levels according to the planets, but volatility due to budget can be seen in many segments. Trade accordingly.

Indian Currency

Indian Rupee may trade in between 72.80 to 73.60 per USD.

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** Before investing or trading please check technical aspects also, it’s a reading based on planetary movements.