After a brutal sell-off in the previous trading session, it turned out to be a great Friday for investors on Dalal Street, thanks to positive trends from global markets and across-the board buying.
The 30 share BSE Sensex ended in 1,534. During the day, it zoomed 1,604. It was 2 points or 3.03 per cent, to 54,396. The NSE Nifty jumped 456.75 points to finish at 16,266. All the Sensex firms ended up in the green, with Reliance Industries, Tata Steel, Nestle, Larsen Toubro, Axis Bank, IndusInd Bank, Sun Pharma, State Bank of India and HDFC emerging as the biggest gainers.
On Thursday, equity benchmark Sensex plunged over 1,500 points to hit an intraday low of 52,669. The 51 and Nifty plunged by over 400 points due to a weak trend in the global markets.
The 30 share BSE benchmark settled at 1,416. It was 30 points lower at 52,792 points. The NSE Nifty fell 431 points to 15,809. According to Angel One Ltd, Sameet Chavan, Chief Analyst-Technical and Derivatives, it would be important to keep a regular tab on global developments and one should be prepared for unexpected moves on either side. We saw some decent relief moves in most of the heavyweight spaces this week, as far as sector participation is concerned. He said that if the market stays above the psychological support of 16,000, the market should show some encouraging signs, which is something we believe should do extremely well.
On a daily time frame, the Nifty has formed Open Bullish Marabozu, which indicates upside movement momentum for an upcoming session. Nifty has been trading in a range of 15750 -- 16410 levels throughout the week, so crossing either side can direct further direction, according to Palak Kothari, research associate, Choice Broking.
Nifty has given a closing above the 9 day moving average, which indicates a bounce back from lower levels can be seen. The momentum indicators were trading with a positive crossover reversed from the oversold zone, which suggests a northward journey in the counter, she said.
The Nifty may find Strong support around 16000 levels, while on the upside 16410 may act as an immediate hurdle. She added that Bank nifty has support at 33200 levels and resistance at 34800 levels.
The markets are seeing a rollercoaster ride and the key is to manage overnight risk. There will be updates on the Russia-Ukraine war, as well as the last leg of earnings going forward. According to Ajit Mishra, VP Research, Religare Broking Ltd., we reiterate our advice to focus more on managing risk and preferring hedged bets.
After seeing a decline over the past two weeks, the equity markets ended this week on a positive note, according to Shrikant Chouhan, Head of Equity Research Retail Kotak Securities. Indian equity markets have large volatility, as a result of global cues. Benchmark indices like Sensex 30 and Nifty 50 saw gains between 2 -- 3 per cent. After a correction in recent weeks, the metal sector rebounded sharply. The BSE IT index was down in an otherwise positive market this week. FII continued to sell in India. Markets were wary of global growth-inflation expectations, he noted.
The focus will be more on the macro data points with the result-season coming towards the last leg. Monetary policy tightening action by Central Banks around the world due to high inflation will have a negative impact on market sentiments, said Chouhan.