Amid strong optimism about a bull run, the domestic bourses Sensex and Nifty gained 3 per cent during the week, but failed to close above the psychologically important levels.
In the week under review, the BSE benchmark Sensex breached 20K mark and the NSE index Nifty surpassed 6K level twice, raising the possibility of a sharp surge on the back of strong technicals.
The necessary trigger for a rally is expected to come from the US Federal Reserve, which is likely to lower the Fed rate by 25 basis points in its meeting on December 11.
Foreign Institutional Investors (FIIs) stepped up their activity at the two weekend sessions and are expected increase inflows after the Fed’s decision on interest rate.
The BSE barometer extended its gains and ended the week at 19,966.99, netting a rise of 602.81 points of 3.11 per cent over last weekend’s close of 19,363.19.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) soared to a new peak of 6,042.10 before closing at fresh high of 5,974.30 from previous weekend’s close of 5,762.75, a net gain of 211.55 points or 3.67 per cent.
Both the key indices Sensex and Nifty crossed the crucial levels after more than a month but again met with a stiff resistance, indicating consolidation before they breach these resistance levels.
Reliance Energy gained 11 per cent on the back of the company’s decision to invest Rs 8,000 crore to part-finance its huge requirements mainly for large infrastructure projects.