Four stocks in Nifty 50, all from auto sector, hit their 52-week high – Bajaj Auto, Hero Motor Corporation, Eicher Motors, and Tata Motors
Even though the market in general is red after hitting lifetime high yesterday, today’s performance reiterates investors optimismAuthor : Gopal Aggarwal
Even though the stock market is red today and some investors, especially short-term ones might be facing losses (either realised or unrealised), still overall the optimism seems high.
In one of the benchmark indices of the Indian stock market, Nifty 50, four stocks today hit their 52-week high. For beginners in stock investing and trading, it is worthwhile to learn that the highest and the lowest price in the last one calendar year (including the current trading day, if applicable) hold significance as the breaking of either indicates a long-term strength or weakness.
What is interesting to note is that all the stocks we are talking about are from automobile sector.
It is estimated from this development that the story of the Indian economy is looking positive from the near-future onwards.
Fundamental analysis-wise, we know that in India, as in the world, the pandemic COVID-19 is nearing the end of its threat with the vaccination exercise progressing admirably.
Also, the hopes of political stability in the largest democracy of the world, America, with Joe Biden and Kamala Harris taking over their positions officially with the commencement of their oath-taking ceremony (see highlights of Joe Biden’s inauguration speech) have been playing their part in uplifting the stock markets around the world.
Though there are some issues currently active in India and it may appear at a first glance that they might derail the economy. The misunderstanding between the Naredra Modi-led central government’s farmer laws and some farmers is not dampening the enthusiasm of investors. By inference, it is highly probable that this issue will be resolved to a mutually beneficial outcome.
In a few weeks will be the anniversary of the pandemic COVID-19, and whatever we all have faced, now the things are looking up and even if it is not apparent now, the behaviour of the Indian stock market is indicating this to us.