Will bulls be able to attain 14,000 mark on Nifty?

When we talk about the performance of markets in 2020, the first thing that strikes in mind is the word 'comeback' as markets have made a strong comeback after a severe crash. Wednesday was no different as markets did make a strong comeback and ended near the high point of the day. However, the milestone of 14,000 still seems so near yet to so far on Nifty. 

Will the bulls be able to achieve this special milestone on the last trading session of the calendar year 2020 and give market participants yet another reason to celebrate? Let’s look at what SGX Nifty is indicating. SGX Nifty is indicating a tepid start in store for the markets as it is trading down by 11 points or 0.08 per cent at 13,970. However, as we have mentioned that the comeback has been the highlight of 2020, we believe that there is a high probability that the markets would come back and hit the milestone of the 14,000 mark. Having said, some caution is also warranted on the eve of December series expiry as we could see some bouts of volatility.      

Asian markets were trading in the green on Thursday. China’s Shanghai Composite has surged over a per cent and it is trading near its 52-week high levels. Sustaining above the 3,465 level would result in a fresh breakout of the multi-month consolidation. On a YTD basis, Shanghai Composite has delivered a return of nearly 12 per cent. Hong Kong’s Hang Seng has gained 0.41 per cent to 27,259 and on a YTD basis, Hang Seng is down by nearly 3.7 per cent.    

US stocks eked out modest gains on Wednesday amid mixed reads on the economic front. The economic calendar saw its busiest day of the week. Chicago region manufacturing growth unexpectedly accelerated and pending home sales for November surprisingly deteriorated. However, traders took solace from the fact that Britain becomes the first country to approve the emergency use of the Oxford-AstraZeneca vaccine. 

In the end, Dow and Nasdaq added 0.2 per cent each while S&P 500 advanced 0.1 per cent. Meanwhile, the European indices ended Wednesday’s session mostly lower as the UK government plans to impose tougher restrictions as COVID cases soar.