The Nifty50 increased 391.1 points, or 1.57 percent, to close the week at 25,285.35, while the BSE Sensex index gained 1293.65 points, or 1.59 percent, to finish at 82,500.82.
This week’s performance of the wider indexes was still uneven, with the small-cap index finishing flat and trailing the other indices, while the mid- and large-cap indices both increased by 1.5%.
The Nifty50 increased 391.1 points, or 1.57 percent, to conclude the week at 25,285.35, while the BSE Sensex index gained 1293.65 points, or 1.59 percent, to close at 82,500.82.
Foreign Institutional Investors (FIIs), who had been net sellers for the previous 12 weeks, became net purchasers this week when they purchased stocks valued at Rs 2,975.53 crore. However, with purchases of stocks totaling Rs 8,391.11 crore, Domestic Institutional Investors (DII) continued to be net purchasers in the 25th week.
With gains of 5%, the Nifty Capital Market and IT indices continued to lead the sector, followed by the Nifty Healthcare, Nifty Private Bank, Nifty Consumer Durables, and Nifty Pharma indices, which all had increases of 3%, 2.3%, and 2.3%, respectively. The Nifty Media index, meanwhile, fell by about 3%.
“The benchmark indexes maintained their upward trend throughout the last week. The Sensex was up 1290 points at the finish, while the Nifty was up 1.57 percent. While the Media index lost the most, falling 2.75 percent, the Capital Market and IT indices excelled among sectors, with the Capital Market index rising 5.20 percent and the IT index soaring 4.80 percent,” said Amol Athawale, VP Technical Research at Kotak Securities.
“The market effectively broke over the 25,000/81700 level throughout the week, and it continued to gain strength after the breakthrough. Technically, it is trading above the 20-day SMA (Simple Moving Average), which is generally favorable, and has created a lengthy bullish candle on the weekly charts. We believe that the 25,000/81700 level and the 20-day SMA will serve as important support areas for short-term traders.
“The upward trend is probably going to continue as long as the market is trading over 25,000/81700. The market may rise to 25,450–25,500/82900–83100 on the upper side. The index may rise above 25,700/83700 if there is further upward potential. On the other hand, the upswing would be at risk if the market dropped below 25,000/81700. Traders could choose to sell their long bets below this level, according to Athawale.
“The short-term trend for Bank Nifty is favorable. 56,200 and 55,800 would serve as important support levels for traders that follow trends. On the upper side, he said, 57,000 and 57,500 may be important resistance levels for the bulls.
At the conclusion, the BSE Small-cap index was flat. Indraprastha Medical Corporation, GM Breweries, Dreamfolks Services, Stylam Industries, Infibeam Avenues, Salzer Electronics, SpiceJet, Avalon Technologies, Indef Manufacturing, South Indian Bank, Jindal Photo, and Indo Thai Securities all had gains of 15–41 percent. Nonetheless, the following companies had declines of 10–22%: Shankara Building Products, Paushak, Hemisphere Properties India, John Cockerill India, Nelcast, Lumax Auto Technologies, VTM, and Praveg.
Where will the Nifty50 go?
SVP of Research at Religious Broking, Ajit Mishra
Technically, the Nifty is once again getting close to the 25,450 trendline resistance, with 25,000 serving as the current immediate support. A clear breach over this barrier would strengthen the rebound even more and pave the way for the June highs, which are close to 25,669.
Given the anticipated volatility throughout the current results season, traders should prioritize conservative risk management even if we anticipate rotating purchasing across major sectors to continue offering trading opportunities.
Senior Technical Analyst Rupak De of LKP Securities
Friday saw the Nifty maintain its strength after emerging from the current consolidation range. Because it is maintaining above the key moving average, the trend is still favorable.
The situation seems to be favorable for a short-term increase. An excellent time to initiate long trades would be during any drop.
The Nifty may move between 25,500 and 25,550 on the upper end, while 25,150 is the support level on the bottom end. The trend can become a little weaker if it drops below 25,150.
Senior Technical Research Analyst Nagaraj Shetti works for HDFC Securities.
On the weekly chart, the Nifty created a long bull candle that almost devoured the top part of the September end long bear candle. On the weekly period chart, we likewise see bullish higher highs and lows.
The market’s basic tendency is still upward. By next week, it is anticipated that the Nifty will move closer to the crucial resistance of the 25400–25450 levels, which is the downsloping trend line and the previous swing high of September 18. 25150 is the location of immediate help.
Sudeep Shah, SBI Securities’ Head of Technical Research and Derivatives
There is still room for further growth since the index is now just 0.64% below its previous swing high of 25449, which was reached on September 18. The weekly chart showed underlying strength as the Nifty finished above both the 20-week EMA and the previous week’s high of 24905.
Additionally encouraging are technical signs. After being flat, the RSI has started to rise again and closed above 60, suggesting that there is still opportunity for further rises. With green histogram bars, the MACD stays above the signal line and zero line, indicating continued purchasing pressure and the near-term continuation of the upward trend.
Considering important levels, the 25,400–25,450 range will serve as the Index’s immediate resistance. The downside may extend till the 25,600 level if the index is able to make a follow-through rise above the 25,450 mark. The 25,200–25,150 range will serve as an important support for the Index while it is down.