Home / Markets / Stock Markets /  Analysts pin hopes of Nifty taking out 13,000 next week

Indian equity market benchmarks Sensex and Nifty today recovered from intra-day losses to close higher, led by gains banks and financial stocks. Nifty 50 index closed 0.68% higher at 12,859.05 after a more than 1% drop on Thursday. The S&P BSE Sensex ended 0.65% higher at 43,882.25. Sensex and Nifty are up more than 10% in November, the best month so far this year on the back of inflows from foreign institutional investors, positive COVID-19 vaccine trial results and a better economic outlook than before.

"The fact that market manages to turn upwards on an intra day or overnight basis after dipping is heartening, keeping hopes of some more upmove alive," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Barclays on Thursday lifted its fiscal 2022 growth forecast for the Indian economy to 8.5% from 7%, while Moody's projected a smaller contraction than earlier for fiscal 2021.

Bajaj Finserv was the top gainer in the Sensex pack, rallying 9.13%, followed by Titan, Bajaj Finance, Kotak Bank, Bharti Airtel, Nestle India, NTPC and HDFC Bank.

Bharti Airtel finished 3% higher after Bharti Infratel and Indus Towers announced the completion of their merger deal to create a mega tower company.

Reliance Industries, shares in which have doubled since their March lows, fell 3.7% and extended its loss for the month to 7.5%. Gland Pharma shares rose as much as 23% in their market debut.

World stocks edged higher on Friday as hopes of economic recovery ahead helped offset the blow dealt by news that the U.S. Treasury was ending emergency loan programmes.

Here is what analysts said on today's market performance:

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

"After respecting the short term support of 12750, the Nifty clawed back from negative territory in a jiffy. We notice inclining volumes when markets are rising which is a testament to a strong upside momentum. There is every possibility that we achieve 13100 next week."

Vinod Nair, Head of Research at Geojit Financial services

"Although the market showed high volatility in the first half, a sharp recovery was seen in the market which was strongly supported by the banking sector. Banking indices are marching towards its pre-covid valuations in spite of concerns over NPA recognitions. Global markets are moving cautiously amid a rise in the covid related cases and conflicting views over US fiscal stimulus. The overall market momentum going forward will depend on the progress associated with the effectiveness of vaccine distribution, a major factor determining economic recovery."

Ajit Mishra, VP - Research, Religare Broking Ltd

"We reiterate our view that the prevailing consolidation is healthy and traders should focus on a stock-specific trading approach. While we’re seeing noticeable interest in the rate-sensitive pack, we expect fresh traction in select counters from the defensive pack i.e. FMCG, IT and pharma after the recent consolidation so suggest planning the trades accordingly. In absence of any major trigger, COVID-related updates and global cues will remain on the participants’ radar."

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

"Nifty on the weekly chart formed a small negative candle with minor lower shadow. This pattern signal a breather type formation at the new highs, after a sharp upmove of the previous couple of weeks. Hence, this could also mean a lack of selling enthusiasm in the market post sharp upmove/at all time highs. The Nifty closed above the crucial long term up trend line resistance at 12800 levels.

The near term uptrend status remains intact and upside momentum is expected to continue after this small dip in the market. Hence, one may expect Nifty to move towards the new all time high of 12963 levels by next week. A decisive/sustainable move above 13000 levels could open next upside targets of 13500-13600 in the near term. Immediate supports to be watched at 12680-12730 levels." (With Agency Inputs)

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