Domestic equity market benchmarks Sensex and Nifty bounced back from four-day losing streak to end higher on Friday led by gains in index heavyweights such as RIL, HDFC, TCS and HUL. However, weakness in HDFC Bank share price capped the gains. Sensex jumped nearly 2,000 points from day’s low while Nifty 50 index touched 8,883 points in intraday trade. “Tracking positive sentiments in the global markets, Indian indices closed up by around 6%. It was in sync with Asian and European markets and was more of a relief rally driven by technicals rather than any fundamental change in outlook. Hopes of further stimulus from Central banks across the world to contain the economic damage boosted global markets,” Vinod Nair, Head of Research at Geojit Financial Services said.
ONGC gained 18%- As many 28 stocks out of 30 Sensex stocks finished trade in green, with ONGC as the index gainer, up 18.58 per cent, followed by UltraTech Cement, HUL and RIL. While HDFC Bank and IndusInd Bank were the only losers on Sensex.
Nifty FMCG index jumped 8%- All the sectoral indices finished trade in green with Nifty FMCG and Nifty IT index as top gainer, up 8.77 percent and 8.52 per cent, respectively. Similarly, Nifty Metal index settled 7.68 per cent led by gains in Jindal Steel,Vedanta and Hindustan Zinc.
Situation in China returning to normalcy- “Despite Fitch Ratings halving 2020 global growth forecast to 1.3 per cent from 2.5 per cent, the fact that PBOC kept its benchmark rates steady gave some hopes to markets that the situation in China is fast returning to normalcy. Asian and European markets traded higher on Friday as the first tentative sign of stabilisation was built upon. Markets tend to move ahead of the real world and bottom out well ahead of the real economy,” Deepak Jasani, Head Retail Research, HDFC Securities said.
Technical Observation- “Along bull candle was formed on Friday, which indicates a short term upside reversal pattern. Hence, Thursday’s swing low of 7832 could now be considered as an important support for Nifty. We observe a formation of identical type negative candle on the weekly chart (similar to last weeks candle-long bear candle with long lower shadow). The overall trend of Nifty is still negative, Friday’s upside bounce has not reversed the underlying trend so far,” Nagaraj Shetti, Technical Analyst, HDFC Securities said.