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Last Updated : Mar 16, 2019 09:07 AM IST | Source: Moneycontrol.com

Sensex reclaims mount 38K, rallies 1,300 points: 30 stocks which rose 10-20% in a week

The benchmark indices outperformed the broader market in the week gone by as the S&P BSE Mid-cap index rose 2.4 percent while the S&P BSE Small-cap index was up 2.1 percent for the week ended March 15.

A blockbuster week for India markets as Sensex and Nifty50 surpassed their crucial resistance levels and closed with hefty gains for the week ended March 15. The S&P BSE Sensex rallied by 1,353 points or 3.69 percent while the Nifty50 rose 3.5 percent in just 5 trading sessions.

The S&P BSE Sensex closed above 38,000 for the first time since September 14, 2018, while the Nifty50 also reclaimed 11,400 for the first time since September 18, 2018, and is all set to hit higher target towards 11,500 levels.

"Benchmark indices ended this week on a strong note with Nifty closing above 11400 levels. Sensex reclaimed 38,000 levels led by a rally in banking stocks. Strong Global cues and aggressive buying from foreign investors are some triggers that led to positive market sentiments," Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas told Moneycontrol.


The benchmark indices outperformed the broader market in the week gone by as the S&P BSE Mid-cap index rose 2.4 percent while the S&P BSE Small-cap index was up 2.1 percent for the week ended March 15.

Among the top 500 companies, as many as 32 companies in the S&P BSE 500 index witnessed a rally of about 10-20 percent which includes names like DLF, Finolex Cables, IDFC, Jubilant Life Sciences, Adani Transmission, Allcargo Logistics.

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In the S&P BSE Mid-cap index, as many as five stocks rose 10-20 percent which include names like NLC India, Adani Transmission, NBCC India, Edelweiss Financial Services, and IIFL Holdings.

In the S&P BSE Small-cap index, as many as 69 companies rose 10-40 percent in just five days which include names like Indosolar, ABG Shipyard, Orchid Pharma, The Byke Hospitality, Indo Count Industries, and IIFL Holdings.

One sector which really stood out was the Banking index. The NiftyBank closed 1.58 percent higher or 458 points at 29,381. It hit a record high of 29,520.70.

Banking stocks gained the most, led by State Bank of India, Punjab National Bank, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank.

"Banking pack is leading from the front on the expected lines while others are playing a supportive part on a rotational basis," Jayant Manglik, President - Retail Distribution, Religare Broking told Moneycontrol.

Technical Outlook:

The Nifty50 formed a bull candle which resembles a Shooting Star kind of formation which still needs confirmation. A bearish candle on March 18's sessions would suggest that the momentum is waning.

The Nifty as per weekly timeframe has witnessed a sharp upside breakout of larger range bound movement at 11K mark, with a formation of the long bull weekly candle.

The near-term uptrend of Nifty remains intact, but after a sharp rally, we could see some consolidation. The next immediate resistance level to watch out is 11,500 levels.

"Having moved up sharply recently, there is a possibility of a minor downward correction in the next week, but the expected weakness is unlikely to damage the uptrend status of the market. Immediate resistance to be watched for next week at 11,520 levels," Nagaraj Shetti - Technical Research Analyst, HDFC Securities said in a note.

On the Options front, maximum Put OI is placed at 11000 followed by 11,200 strikes while maximum Call OI is placed at 11,500 followed by 11,400 strikes.

Meaningful Put writing is seen at 11,400 followed by 11,500 strikes while Call writing is seen at 11,700 strikes. Option band signifies a shift in a higher trading range in between 11,300 to 11,600 zones.

Bank Nifty hit a fresh lifetime high of 29,520 mark and managed to hold above 29,000 zones towards the close which is a bullish sign.

"Bank Nifty has been making higher-highs higher-lows from past five trading sessions which indicates bullish momentum. It formed a Bullish Candle on daily as well as weekly scale," Chandan Taparia, Associate Vice President, Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.

"Now it has to continue to hold above 28,888-29,000 zones to extend its momentum towards new lifetime high of 29,700 zones while on the downside major support exists at 29,000 zones," he said.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Mar 16, 2019 09:07 am