Benchmark indices NSE Nifty 50 and BSE Sensex ended Friday’s session in the green, with gains led by IT, Pharma and Private Banks. The NSE Nifty 50 surged 135.35 points or 0.70% to 19,517, and the 30-share Sensex climbed 480.57 points or 0.74% to 65,721.25. Among the broader market indices, Nifty Next 50 climbed 0.79%, Nifty 100 gained 0.71%, Nifty Midcap 100 soared 0.82%, Nifty Midcap 50 surged 0.79%, and Nifty Smallcap 50 rose 0.74%. The volatility index, India VIX tanked as much as 5.47%.
In sectoral indices, Bank Nifty surged 0.82%, Nifty Financial Services climbed 0.79%, Nifty IT soared 1.55%, Nifty Metal gained 0.31%, Nifty Pharma climbed 0.94%, and the Nifty Private Bank soared 1.25%, while Nifty Auto fell 0.33% and the Nifty PSU Bank plunged 0.70%. The top gainers on the Nifty 50 were Cipla, IndusInd Bank, Tech Mahindra, Wipro and Bharti Airtel, while the losers were State Bank of India, Bajaj Auto, BPCL, Maruti Suzuki India and NTPC.
“Positive earnings reports provided a much-needed boost to the domestic market, aiding its recovery from the impact of weak global cues. The pharma sector sustained its positive momentum, with the trend being extended by the IT and banking stocks. However, increasing U.S. bond yields continued to distract the global market, impeding the inflow of foreign funds into the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty trend negative might fall till 19100 in the short-term
“The Nifty opened on a positive note and consolidated thereafter for the most part of the day to close with gains of around 130 points. After the sharp selling during the week the nifty did manage to reverse some of the losses on the last trading session of the week Though, on a weekly basis, it has closed in the red down for the second consecutive week. The pullback is likely to fizzle out in the zone 19,560–19,600 where resistance in the form of the 40-hour moving average and the hourly upper Bollinger band is placed. Thus, this bounce should be sold into. The hourly momentum indicator has also reached the equilibrium line indicating that the pullback has matured and can begin a new cycle on the downside. Overall, the trend is still negative, and we expect levels of 19,100 from a short-term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty pullback unlikely to result in trend reversal
“Bank Nifty has also witnessed a pullback however it is unlikely to result in a larger trend reversal. The pullback is likely to fizzle out in the range 45,100–45,200 where resistance in the form of the 40-hour moving average and the hourly upper Bollinger band is placed. The hourly momentum indicator has witnessed a pullback to the equilibrium line indicating that the pullback has matured and can start a new cycle. Overall, the trend is still negative and we expect it to drift lower to 44,000 in the short term,” Jatin Gedia added.