Closing Bell: Market ends the week in green, Sensex surges 1,534 pts led by realty, metal, pharma, PSU banks

Market took a complete U-turn from Thursday's slump as bargain hunting following the recent crash and recovery in other Asian indices bolstered the sentiment back home. China's central bank cutting the 5-year loan prime rate to 4.45% from 4.6% and easing of Covid-related restrictions also provided a major leg-up to the market.

Technically, after a sharp price correction, the Nifty eventually took the support near 15750 and bounced back sharply. On daily charts the index has formed a double bottom formation and, on weekly charts, after a long time it has formed a long bullish candle, indicating further uptrend.

On weekly charts, the Nifty has reclaimed 16000 and is comfortably trading above the 10-day SMA. The reversal formation is likely to continue if the index succeeds to trade above 16000 and above the same it could move up to 16400. Further upside may continue, which could lift the index up to 16550. However, below 16000, upside would be vulnerable and the index could hit the level of 15800-15700.

Led by Reliance Industries and Tata Motors, bulls came back with vengeance primarily buoyed by a fall in the U.S Treasury bond yields and the US Dollar Index. Another positive takeaway was that all round buying was witnessed from FMCG and IT to Metal stocks.
Interestingly, the gains came despite a fall in overnight Wall Street amidst fears of inflation and waning hopes for U.S. and global economic recovery.

The technical picture has shifted to neutral/positive following today’s aggressive spike with all bullish eyes on Nifty’s biggest hurdles at 16411 mark. Expect a waterfall of selling only below the 15951 mark.

The market displayed a confident yet calm rally throughout the day, supported by fortified global markets, especially the Asian market.

The Chinese Central bank cut a key interest rate to support growth, injecting optimism into emerging markets.

With concerns over an economic slowdown and rate hikes across the globe, investors will continue to invest with caution. Value stocks should do well during this consolidation period.

Indian rupee ended higher by 18 paise at 77.54 per dollar against Thursday’s close of 77.72.

As equity investors brace for higher volatility on the back of the flip-flop in benchmark indices, the fact that markets are never priced to ground realities, the art of capitalising on the disconnect between earnings and stock prices creates pockets of opportunities.

The day witnessed keen investor interest in auto, pharma, metal and defence stocks as indices vaulted 3% with all sectoral indices ending firmly in the green.

After witnessing sharp decline over the past two weeks, the equity markets ended this week on a positive note. However, following global cues, the India equity markets witnessed large volatility. Benchmark indices like Sensex 30 and Nifty 50 saw gains between 2-3%. Overall market breadth was positive with gains witnessed across mid-cap, small-cap and most sectoral key indices.

Metal sector rebounded sharply post steep correction in recent weeks. BSE IT index was down in an otherwise positive market this week.
FII’s continued with their selling in India. Markets remained wary of global growth-inflation expectations. With result-season coming towards the last leg, the focus will be more on the macro data points. Monetary policy tightening action by Central Banks globally amid high inflation will continue to weigh on market sentiments.

Indian benchmark indices erased previous day losses and ended higher with Nifty above 16,200.

At close, the Sensex was up 1,534.16 points or 2.91% at 54,326.39, and the Nifty was up 456.80 points or 2.89% at 16,266.20. About 2468 shares have advanced, 801 shares declined, and 111 shares are unchanged.

Dr Reddy's Laboratories, Reliance Industries, JSW Steel, Nestle India and Tata Motors were among the top Nifty gainers, while losers included Shree Cements and UPL.

All the sectoral indices ended in the green with metal, pharma, capital goods, PSU bank and realty indices up 3-4 percent each.

The BSE midcap and smallcap indices rose 2 percent each.

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The brokerage Morgan Stanley has maintained an overweight rating on Dr Reddy's Laboratories with a target of Rs 5,202.

The company continues to deliver granular growth across its businesses and continues to invest in complex generics, biosimilars and NCEs, said Morgan Stanley.

The firm targets double-digit growth in India and emerging markets, CNBC-TV18 reported.

JK Tyre and Industries has posted 78.7 percent fall in Q4 consolidated net profit at Rs 40.2 crore versus Rs 189.1 crore and revenue was up 13.1% at Rs 3,312 crore versus Rs 2,927.3 crore, YoY

JK Tyre and Industries was quoting at Rs 120.65, down Rs 3.65, or 2.94 percent.