Nifty, Sensex rally for 6th straight day; ‘volatility to remain, identify quality stocks to buy on dips’

Benchmark indices ended higher for the sixth consecutive day on Friday with Nifty climbing above 16700 and Sensex topping 56,000. At close, the Sensex was up 390.28 points or 0.70% at 56,072.23, and the Nifty was up 114.20 points or 0.69% at 16,719.50

Nifty, Sensex rally for 6th straight day; ‘volatility to remain, identify quality stocks to buy on dips’
Sectorally, the Nifty Bank added 1.6%, followed by the Nifty PSU Bank index. The Nifty IT fell 0.6%. In the broader markets, the BSE MidCap index fell 0.2%, but the BSE SmallCap index added 0.2%

Indian benchmark indices ended higher for the sixth consecutive day on Friday with Nifty climbing above 16700 and Sensex topping 56,000. At close, the Sensex was up 390.28 points or 0.70% at 56,072.23, and the Nifty was up 114.20 points or 0.69% at 16,719.50. Sectorally, the Nifty Bank added 1.6%, followed by the Nifty PSU Bank index. The Nifty IT fell 0.6%. In the broader markets, the BSE MidCap index fell 0.2%, but the BSE SmallCap index added 0.2%. Markets will first react to the results of heavyweights like Reliance, ICICI Bank, Infosys and Kotak Bank in early trades on Monday. Analysts recommend continuing with a positive yet cautious stance and focusing more on identifying stocks amid the rotational buying.

Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities

“Falling crude oil prices and rebound in FII inflows into the domestic market helped benchmark Sensex to close above the psychological level of 56000. The fear of aggressive rate hikes by both the US Fed and RBI seems to be moderating, which is giving investors some room to lap up stocks of companies with good fundamentals. Extending the rally for the sixth straight session, investors bought banking and select automobile stocks. During the week, the Nifty successfully cleared the short term resistance of 16300 and also cleared the 100-day SMA. For traders, 16800 and 16950 would act as an immediate resistance zone, while 16500-16350 could be the key support levels.”

Vinod Nair, Head of Research at Geojit Financial Services

“Increased foreign investment and solid quarterly results are increasing domestic demand. Among broad-based buying, banking stocks outshined due to healthy quarterly earnings. European markets traded with modest gains, while investors digested the latest ECB monetary policy as it joined the global peers in policy tightening.”

Rupak De, Senior Technical Analyst at LKP Securities

“Nifty has been moving higher while remaining around the upper band of the rising channel on the daily timeframe. The trend remains positive; however, the proximity to the resistance level attracts selling pressure in the market. Over the short term, the Nifty may witness a consolidation. On the lower end, support is visible at 16500; while resistance is likely to be there at 16750-16800.”

Deepak Jasani, Head of Retail Research, HDFC Securities

“On a weekly basis, Nifty rose 4.18%, the largest rise in 5 months. Nifty could see a higher opening on Monday continuing from the current momentum but find it difficult to record sharp gains after 6 days of rise. 16794 could be the next resistance in the near term while 16588-16627 could provide support. Upward breach of 16794 could lead the Nifty to 16889-16958 band.”

Palak Kothari, Senior Technical Analyst, Choice Broking

“It was a straight forward journey throughout the week as Nifty managed to close above 16700 marks at 16719.45 level with a gain of 114.20 points. On the technical front, Nifty has formed a bullish Marubozu candle on the weekly chart which suggests strength for upside. Nifty has been trading above the horizontal line as well as 100 DMA which suggest a northward journey in the counter. The momentum indicators Stochastic & MACD are trading with a positive crossover on a daily time frame which suggest strength in the counter. The Nifty may find support around 16500 levels while on the upside 16800 may act as an immediate hurdle. On the other hand, Bank nifty has support at 35800 levels while resistance at 37300 levels. Overall, the Index has shown a good rally in this week, stock specific movement can be observed with a support of 16500 levels.

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