BSE Sensex and NSE Nifty 50 ended marginally higher in a volatile trade on Friday. BSE Sensex gained 105 points or 0.2 per cent at 59,793, while NSE Nifty 50 index added 35 points or 0.2 per cent to settle at 17833. Stocks of index heavyweights such as Infosys, Tata Consultancy Services (TCS), State Bank of India (SBI), Tech Mahindra, and Maruti Suzuki India, among others, helped the index to cap losses. Broader market indices too performed in line with equity frontliners. S&P BSE MidCap gained 0.2 per cent or 42 points to settle at 25,937, while S&P BSE SmallCap index added 0.2 per cent to finish trade at 29,529.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Both Sensex & Nifty Index gained 1.7% over the past week. The Indian markets were buoyed by falling crude prices and a decline in domestic bond yields. On the economy front, August exports, at US$33 bn, contracted by 1.1% yoy, while August imports, at US$61.7 bn, increased by 37% yoy. FPI outflows stood at US$190 mn in the past five trading sessions, while DII outflows stood at US$164 mn in the same period. Given the lack of major domestic events, Indian markets’ sentiment will be influenced by its global counterparts to determine its movement. Across the globe, investors will be keeping a close watch on China’s Inflation numbers. The volatility in oil prices and USDINR will be other important factors that may affect the market. Investors need to watch out for stock-specific news.
Palak Kothari, Senior Technical Analyst, Choice Broking
On the technical front, the Nifty is trading with higher high & higher low formations on daily charts suggesting strength in the counter. Nifty has been trading with the support of 21-HMA on an hourly chart which suggests strength to the upside. On the OI Data, On the call side, the highest was witnessed at 18000 while on the put side was at 17600 level. The momentum indicator Stochastic is trading with a positive crossover on an hourly time frame which suggests strength in the counter. The support for nifty has shifted around 17600 levels while on the upside 18000 may act as an immediate hurdle. On the other hand, Bank nifty has support at 39500 levels while resistance at 40900 levels.
Overall, till the time Nifty holds the 17500 level, it’s looking strong on charts crossing above 18000 marks will show an upside rally in the counter. The sector-specific moment has been seen, IT stocks have bottom-up and can show good rally in the upcoming week. One can add on dips.
Vinod Nair, Head of Research, Geojit Financial Services
Domestic bourses kicked off the trading session on a strong footing, backed by positive sentiments across global markets. However, it succumbed to profit booking after surpassing the psychological 60,000 mark. Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75bps rate hikes by ECB. Banking and consumer-facing stocks continued to be top picks in the domestic market.
Ajit Mishra, VP – Research, Religare Broking
Markets ended marginally higher in a volatile session, in extension to the recent up move. Firm global cues triggered an upbeat start in Nifty however profit taking at the higher levels capped the upside. Meanwhile, sectoral indices traded mixed wherein rebound in IT and buying in banking and auto kept the tone positive. The broader indices traded in line with the benchmark and closed marginally higher. We maintain our bullish view on markets and suggest continuing with the “buy on dips” approach. The recent rebound in the US markets is further adding to the comfort. As we’re seeing buying interest across the board, the focus should be more on the best-performing sectors viz. banking, financials, auto and FMCG, and remain selective in the others.