The FMCG, Consumption, Pharma and such traditional defensive stocks have shown improved Relative Strength against the broader markets.
A decisive/sustainable move above 13150 is expected to negate both the negative pattern and that could turn sentiment into further bullish.
Indian share market benchmarks BSE Sensex and Nifty 50 ended over half a per cent higher on Friday. BSE Sensex finished 282 points or 0.65 per cent up at 43,882, while the broader Nifty 50 index ended up 87 points or 0.68 per cent at 12,859. Index heavyweights such as HDFC Bank, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finsv and Bharti Airtel contributed the most to the indices’ gain in today’s session. The broader markets outperformed the equity benchmarks, with S&P BSE MidCap index ending 1.22 per cent or 199 points higher at 16,436.5. While S&P BSE SmallCap index gained 0.77 per cent or 123.5 points to settle at 16,182.55.
“Global markets were also buoyant on news of successful trials of Moderna’s Corona Vaccine. With the end of the earnings season, focus will shift back to economic recovery and market valuations. Risk to the markets is from a resurgence of covid infections in India. We advise investors to focus on building a portfolio of quality stocks across market caps.”
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
“After coming off from the opening highs, the markets saw a sharp short-covering led rally which took the markets again very near to the previous high point. While stepping in to the fresh week from Monday, the zone of 12963-13000 will continue to pose stiff resistance. The NIFTY, in the first go, faces strong resistance at 12963 which is the high point followed by 13000 level which has the highest accumulation of Open Interest so far. The FMCG, Consumption, Pharma and such traditional defensive stocks have shown improved Relative Strength against the broader markets and this trend is likely to continue in the coming week as well.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“We reiterate our view that the prevailing consolidation is healthy and traders should focus on a stock-specific trading approach. While we’re seeing noticeable interest in the rate-sensitive pack, we expect fresh traction in select counters from the defensive pack i.e. FMCG, IT and pharma after the recent consolidation so suggest planning the trades accordingly. In absence of any major trigger, COVID-related updates and global cues will remain on the participants’ radar.”
“In a volatile session today Financials led by Kotak Bank & Bajaj Twins helped the Bulls to wrest control with able support provided by few heavyweights across sectors. The broader market saw buying interest in Insurers and Defence stocks”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
After respecting the short term support of 12750, the Nifty clawed back from negative territory in a jiffy. We notice inclining volumes when markets are rising which is testament to strong upside momentum. There is every possibility that we will achieve 13100 next week.