BackSensex clocks longest stretch of weekly gains since 2018: What analysts say
'The momentum indicators like RSI, MACD indicate the positive outlook to continue and market breadth to improve further after the decisive level breakout of the resistance zone,' says an analyst'At present the Nifty has a support at 13,450 levels while resistance comes at 13,800 levels,' says another analyst
PremiumNew Delhi: On the last trading day of the week, Sensex jumped 529 points on Thursday following gains in index majors Reliance Industries, HDFC twins and ICICI Bank amid positive global cues. Profit booking was seen in some selective IT stocks like Infosys, Wipro and HCL Tech after the recent spurt.
The 30-share BSE index ended 529.36 points or 1.14 per cent higher at 46,973.54. The broader NSE Nifty surged 148.15 points or 1.09 per cent to 13,749.25.
Axis Bank was the top gainer in the Sensex pack, rising around 3 per cent, followed by Sun Pharma, Reliance Industries, ONGC, HDFC, ICICI Bank, Kotak Bank and Bharti Airtel.
On the other hand, Infosys, IndusInd Bank, HCL Tech, Nestle India and Tech Mahindra were among the laggards.
All the sectoral indices ended on a positive note except Nifty IT, Media and Realty; Nifty Bank closed 1.7% higher. Mrs. Bectors made a strong debut in today’s session by doubling investor’s wealth on the listing day.
Here's what analysts are saying about what trading in near future may look like:
Domestic equities remained upbeat and witnessed sharp rebound supported by financials, said Binod Modi, Head- Strategy at Reliance Securities.
Emerging possibility of Brexit trade deal led Asian markets higher including India, he said, adding that barring IT, all sectors contributed to the market rally.
"As the outline of Brexit trade deal was reached, higher chances of Brexit trade deal led markets to trade higher. Also, fear of new coronavirus strain seems to be easing out now with select European countries opening borders for Britain," he told PTI.
He further noted that FPI inflow continues to remain as a key driving force the domestic equities, which is expected to sustain in the near term in the backdrop of weak dollar, soft monetary policies of global central bankers and fiscal stimulus in the US.
“There’s a huge opportunity for run-up in Indian stocks" with the country set to grow quicker than most other economies in 2021, Praveen Jagwani, chief executive officer of UTI International Singapore Pte., told Bloomberg Television.
“News around Covid 19 is resurfacing globally, and we would recommend caution at this juncture," said Nikhil Kamath, chief investment officer at True Beacon, an India-based hedge fund. “Patient investors will find better opportunities to come back into the market."
"The market witnessed the continuation of the strong pullback rally after a big correction that occurred on Monday. While Nifty sustaining above 13,750 is the key factor from a short-term perspective, A decisive breakout above the zone of 13,760-13,780 could open the gate for a movement till 13,990. The momentum indicators like RSI, MACD indicate the positive outlook to continue and market breadth will improve further after the decisive level breakout of the resistance zone," said Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited- Investment Advisor.
"Nifty index opened positively and continued the upside move during the day and closed at 13,749.25 levels with a total gain of 148 points with the help of Reliance, that gained over 2% in a day to close near the 20,00 mark. On the sectoral front, all indices contributed to the gain while Nifty IT was the top laggard for the day. The stock specific move has been witnessed in Reliance, Bajaj Finance, Tata Motors and Axis Bank while top losers were Infosys, Grasim, Nestle. On the technical front, the benchmark index has shown full recovery on a weekly basis and closed on a green note, which indicates positive strength in the market. Moreover, a momentum Indicator RSI has also bounced from 55 level and closed at 67.39 levels which points to the positive breadth in the benchmark index. At present the Nifty has a support at 13,450 levels while resistance comes at 13,800 levels," said Sumeet Bagadia, Executive Director, Choice Broking.
With agency inputs
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