Bulls remained in control throughout the week pushing benchmark indices above their crucial resistance levels. The S&P BSE Sensex climbed above 50,000 while the Nifty50 also closed above 15,100 levels.
The market recorded its biggest weekly gain since the budget week where the S&P BSE Sensex rose 3.7 percent while the Nifty50 was up 3.4 percent for the week ended May 21, but the big action was seen in the broader market space.
The S&P BSE Midcap index rose 4.7 percent while the S&P BSE Smallcap index gained 4.1 percent in the same period.
There are as many as 61 stocks in the S&P BSE 500 index that rose 10-40% in a week which include names like Gland Pharma, Firstsource Solutions, RBL Bank, SBI, Adani Total Gas, CSB Bank, India Cement, HFCL, and TCS Express.
Fighting global odds, Indian markets remained resilient despite geopolitical concerns, US Fed minutes signaling a plausible slowdown in the bond-buying in the near future weighed on sentiment while easing COVID concerns, and strong March quarter results from India Inc. lifted sentiment.
“The Indian market has started to outperform the development market which is expected to continue due to a fall in COVID cases. High cases were the reason for India to trade weak, now INR has started to appreciate,” Vinod Nair, Head of Research at Geojit Financial Services said.
“The entry of new vaccines in the market which will ease supply crunch and a steady decline in the new covid cases are factors boosting investor confidence in the market,” he added.
Sectorally, buying interest was visible in banks, power, realty, auto, and consumer discretionary stocks.
Banking stocks got support from strong earnings from State Bank of India (SBI) as well as news of a surplus transfer of Rs 99,122 crore to the government from the Reserve Bank of India (RBI) for the nine-month accounting period ended March 31.
“Banks led the charge today buoyed by SBI earnings as Bulls went on a rampage with stimulus hopes and transfer of surplus by the Central Bank to the GOI kept the street bullish,” S Ranganathan, Head of Research at LKP Securities told Moneycontrol.
BSE Realty and Power indices have been correcting and consolidating over the past few weeks. The price action this week was more of a catch-up rally for these indices, suggest experts.
“Indiabulls Housing Finance reported a robust Q4 earnings result with positive commentary, pushing the realty stock prices higher,” Nirali Shah, Head of Equity Research, Samco Securities said.
“Consumer trend throughout Q4 was very encouraging and sales were at a lifetime high with a positive outlook going forward. Realty stocks could also pose as a decent hedge against inflation which could have fuelled investments in these stocks amidst rising inflation fears,” she added.
The Nifty50 closed above the crucial resistance level of 15,100 levels on Friday and also above its crucial short and long-term moving averages.
Since the Nifty-50 has decisively broken the 15,000 mark on both daily and weekly closing it can potentially inch up to 15,400-15,500.
For the last 10 weeks, Nifty’s remained range-bound between 15050 and 14200 odd levels and formed a base. “The next level is the all-time high of 15431 which will be the immediate level for next week,” Ashish Chaturmohta, Head of Derivatives and Technical Analysis, Sanctum Wealth Management said.
“Crossing above this next level is seen at 15785. On the down, a recent low of 14885 will act as support, breaking below this index will retrace back into the trading range,” he said.Disclaimer
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