On weekly basis, the Nifty index declined 139.55 points or 0.53 per cent while Sensex declined 444.71 points or 0.51 per cent.
The market displayed broad-based strength across sectors, with only the Nifty FMCG and Media indices closing in the red. The Nifty Metal index zoomed 2.63 per cent, followed by Nifty Realty (up 1.53 per cent), Consumer Durables (up 1.46 per cent) and Oil & Gas (up 1.11 per cent).
The Nifty Bank index added 180.10 points or 0.30 per cent to finish the week at 59,389.95 with seven constituents advancing and the remaining five sitting in the southward direction.
In the broader market, Midcap and Smallcap indices mirrored the upside for a second day, as Nifty Midcap 100 climbed 1.18 per cent and Nifty Smallcap 100 rose 0.95 per cent.
The volatility index, India VIX, eased to the 10.11 on Friday, a level that remains supportive for bullish sentiment.
On the other hand, HUL cracked 1.80 per cent, followed by Max Health, Sun Pharma, ITC, Asian Paints, Power Grid, Bajaj Auto, Eicher Motors, Coal India and HCL Tech were the losers.
Ajit Mishra, SVP, Research, Religare Broking, said that the positive momentum in market was supported by global sentiment stemming from the Fed’s rate cut announcement. Domestic flows also remained healthy, with sustained retail and mutual fund buying, supported by stable macro indicators and improved liquidity conditions.
“The broader markets are also recovering, traders should avoid averaging loss-making positions and instead use the rebound to trim exposure in underperforming counters,” the analyst said.
Rupee, FII Selling To Impact Markets
Vinod Nair, Head of Research, Geojit Investments, said that markets are likely to maintain a positive bias next week but will remain sensitive to fluctuation in rupee, FII flow trends and clarity on trade deal.
“Risks persist from currency fluctuations and global trade uncertainties. However, improving earnings visibility and liquidity support provide a constructive backdrop and downside protection,” the expert said.
Nifty took support near its 50-DMA at 25,720 and staged a sharp rebound to given a weekly closing above 26,000. Experts said that Nifty has reclaimed the 21EMA by going past 26,020 and appears to be in a comfortable
Nandish Shah – Deputy Vice President, HDFC Securities, said that short-term trend of the Nifty has turned positive as Nifty decisively closed above its important short-term moving averages. On the upside, 26,202 remains a resistance on positional basis for Nifty. Support for Nifty has shifted upward to 25,900
Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty has moved back above 26,000 after a brief period of weakness. On the 4-hour chart, the RSI is in a bullish crossover, indicating improving momentum. In the near term, the trend is likely to remain constructive as long as Nifty holds above 25,900, which is expected to serve as a key support level. On the higher side, the index may move towards 26,300 in the short term.
According to Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking, said that 25,700 to 25,720 is a strong support zone for Nifty from where it reversed after the recent correction. If Nifty manages to hold above 26,000, a short-covering move toward 26,200 to 26,250 is possible in the next week.
On the daily chart, Nifty has formed a long bull candle with gap up opening. On the weekly chart, the index has formed a small bear candle with long lower shadow.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said that the similar candle pattern has been formed in the last two weeks, which signals an emergence of sharp buying in the market from near the immediate supports. “This is positive indication. The larger degree positive chart pattern like higher tops and bottoms is intact and recent swing low of around 25693 could be considered as a new higher bottom of the pattern,” the analyst said.
The underlying trend of Nifty continues to be positive, the analyst said, adding that the next upside levels to be watched around 26300-26400. Nifty has immediate support placed at 25900.
Nifty’s momentum indicators and oscillators continue to remain in buy mode on the weekly charts, signalling sustained strength.
Market breadth remained strong, as the advance-decline ratio on the BSE stood at 1.63, highest since November 26th, indicating fresh buying momentum.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
