The broader market indices exhibited robust gains in the volatile week ending June 7, aligning closely with the performance of the main indices, which were influenced by varying general election results compared to exit polls.
Positive factors such as the Reserve Bank of India's upward revision of GDP forecast, declining crude oil prices, increased GSP collection, the European Central Bank's rate cut, and the progression of monsoon rainfall collectively bolstered investor confidence.
Notably, the BSE Small-cap, Mid-cap, and Large-cap indices all surged by 3 percent each during the period.
Throughout the week, the BSE Sensex recorded an impressive gain of 2,732.05 points or 3.69 percent, closing at 76,693.36. Similarly, the Nifty50 index saw a notable uptick, rising by 759.5 points or 3.37 percent to conclude at 23,290.20.
During the week, BSE Sensex hit fresh all-time high of 76,795.31, while Nifty also inched near to its record high of 23,338.70.
Among sectors, Nifty Information Technology index rose 8.6 percent, Nifty FMCG index rose 7 percent, Nifty Auto index gained 6.8 percent, and Nifty Media and Realty indices added 5 percent each. However, Nifty PSU Bank index declined 1.4 percent.
During the week, Foreign institutional investors (FIIs) sold equities worth of Rs 13,718.42 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 5,578.71 crore.
"The Indian equity markets navigated a highly volatile trading week with significant swings in both directions. Despite initial record highs, the market experienced a downturn following the election verdict. However, bullish market participants capitalized on the opportunity to not only stage a modest recovery but also drive the markets to new lifetime highs. The week rounded off with the Nifty50 index achieving its highest-ever weekly closure around 23300 levels, procuring over 3.30 percent," said Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One.
The BSE Small-cap index advanced 3 percent with Heritage Foods, Moschip Technologies, PTC Industries, Authum Investment & Infrastucture, V-Mart Retail, BL Kashyap & Sons, Bhagiradh Chemicals and Industries, Ganesh Housing Corporation, IFB Industries, Pokarna, Marathon Nextgen Realty, NAVA, Universal Cables rising between 20-64 percent.
On the other hand, Jaiprakash Associates, Titagarh Rail Systems, Techno Electric & Engineering Company, TruCap Finance, Cressanda Solution, Data Patterns (India) fell 11-30 percent.
Where is Nifty50 headed?
Rupak De, Senior Technical Analyst, LKP Securities
The short-term trend looks very positive as the index closed near an all-time high. Going forward, the market remains a buy on dips as long as 23000 is not broken. On the higher end, the index might move towards 23500-23600. On the lower end, profit booking might occur only below 23000."
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
The short-term trend of Nifty continues to be positive. Having reached the overhead resistance of around 23300-23400 levels, there is a possibility of minor dip in the market from the highs in the short term and that could be a buying opportunity. Immediate support is at 22900 levels.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the daily charts we can observe that the Nifty has been inching higher after a sharp decline on Tuesday earlier during this week. It has recovered all the lost ground and is within touching distance of previous all-time high of 23338. The V shape recovery has put the structure in the Favor of bulls and dips towards support zone 22800 – 22700 should be used as a buying opportunity. On the upside the psychological level of 23500 is likely to attract some profit booking at higher levels.
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