Bank Nifty continued with its rally and once again outperformed the benchmark yesterday. As there are no signs of reversal, we continue with our advice for traders to trade with a positive bias and look for stock-specific opportunities from a short term perspective. Once the index surpasses this psychological mark of 13,000 which now just seems to be a formality, 13,100-13,200 would be the zone to watch for the index immediately. On the flipside, 12,800-12,770 is the immediate support and until we see any violation of short-term supports, traders should avoid taking any contra trades.

                                

 Nifty opened with a gap down but until we do not break 12,500, the trend continues to remain on the upside. We still have an open target of 13,100 which the index is capable of achieving this month. A buy on dips approach is recommended.

A distinct trend in the market now is buy on dips. Sustained selling by FIIs and high valuations are negatives but strong FII inflows, steady decline in COVID infections, strong rebound in economic activity, expectations of synchronized global economic recovery in 2021and continuation of accommodative monetary policy are very strong positives. This is likely to keep the market resilient even during bouts of profit bookings and consequent corrections. Value buying in mid and smallcaps can emerge as a trend, going forward.

 GPT Infraprojects share price jumped 10 percent hitting upper circuit of Rs 32.35 per share on BSE after the company won a contract worth Rs 162.83 crore. The company has been awarded a contract by the office of the Hooghly River Bridge Commissioners (HRBC), Transport Department, Government of West Bengal, Kolkata.

The transportation infrastructure business of L&T Construction, the construction arm of Larsen & Toubro, has secured another mega-contract from the National High-Speed Rail Corporation Limited (NHSRCL) to construct 87.569 km of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, popularly referred as the Bullet Train project.

USD INR to open a tad weaker around 74.25, as there is a bit of risk aversion overall in Asia but it may not matter much. RBI ultimately leave the buying in the pair around 74.40 and the dollar fell by 30 paise. 74.50 is a good level to sell while 74.10 a good level to buy though I would prefer 73.80 as the ideal buying level. But RBI needs to allow 74.10 to be broken before we see 73.80.

MUST-READ:  

1)Dalal-Street on a High Points to Trade.

2)Indices trade in the red with Nifty around 12,900; metals shine.

3)Buy Back Plans helps TCS to gain its shares.

4)Dates are recorded for WIPRO shares