On the upside, Nifty could rally to 13,100 or 13,200 on a close above 12,970. For the coming week, FMCG and pharma sector should be on the watch list, say experts.
After being chased away by the bears in the previous trading session, the bulls regained their control of D-Street on November 20, as the S&P BSE Sensex rose 282 points to 43,882 and the Nifty50 closed 87 points higher at 12,859.
Sectorally, action was seen in telecom, consumer durables, power, finance, and banks while some selling pressure was visible in the energy space.
On the broader markets front, the S&P BSE midcap index rallied 1.2 percent while the S&P BSE Smallcap index closed with the gains of 0.7 percent.
For the week, the Sensex and the Nifty rallied 0.6 percent each. On the sectoral front, the Nifty Bank rose more than 2 percent, the Nifty Auto was up 4 percent, and the midcap index gained nearly 3 percent for the week ended November 20.
The market bounced back from key support levels but analysts advised caution, saying the market trajectory would be determined by global COVID-19 cases and news on the US fiscal stimulus package.
"Although the market showed high volatility in the first half, a sharp recovery was seen in the market which was strongly supported by the banking sector. Banking indices are marching towards its pre-Covid valuations in spite of concerns over NPA recognitions,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
Global markets were moving cautiously amid a rise in COVID cases and conflicting views on US fiscal stimulus, he said. The market momentum would depend on the progress on the effectiveness of vaccine distribution, a major factor determining economic recovery, he said.
Top Nifty gainers included Gail India, Titan Company, and Bajaj Finserv while IndusInd Bank, Adani Ports and RIL were among top Nifty losers.
Stocks & Sectors
Sectorally, the S&P BSE Telecom index was up 4.7 percent followed by the S&P BSE Consumer Durables index that gained 2.7 percent and the S&P BSE Power index closed with gains of 1.8 percent.
More than 100 stocks on the BSE hit a fresh 52-week high. These include MRF, Gland Pharma, Info Edge, Kotak Bank, InterGlobe Aviation, Supreme Industries and Titan Company.
A volume spike of more than 100 percent was seen in Jindal Steel, Tata Steel and Adani Ports.
Long Buildup was seen in stocks like Jindal Steel, Bajaj Finserv and Tata Steel. Short Buildup was seen in stocks like Adani Ports, Tata Power and ICICI Bank.
The Nifty50 closed above its crucial resistance level of 12,850. It bounced back after breaking below 5-Day EMA
It bounced back from the support zone placed near 10-day SMA, an indication of the bulls' firm grip.
For the bulls to remain in control in the coming week, a close above 12,970 is required, say experts. A close below 12,730 could lead to profit-taking.
“In the coming week, it is mandatory for the market to cross the level of 12,970. In case the Nifty fails to break 12,970, then it would result in a short-term weakness. Below 12,730 levels, the Nifty could fall to 12,630 or 12,530 levels,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities told Moneycontrol.“On the upside, above the level of 12,970 the Nifty could rally to 13,100 or 13,200 levels. Be stock specific for the time being. For the coming week, Nifty FMCG and Nifty Pharmaceuticals sectors should be on the watch list,” he said.
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