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Week in 5 charts: Nifty hits record high amid US-Iran tension; rupee up 86 paise

Last week, the Sensex rose 135.11 points (0.32 percent) to end at 41,599.72, while the Nifty added 30.15 points (0.24 percent) to end at 12,256.8.

January 11, 2020 / 10:24 AM IST

The market broke two consecutive losing streaks and ended the week with moderate gains, as the Nifty recorded a fresh record high in the week ended January 10 amid volatility due to geopolitical tension.

In the trading session on January 6, the Sensex posted its biggest single-day fall in nearly a year on the back of geopolitical tension after a senior Iranian military official was killed in a United States airstrike.

However, as the tension ease between two countries and bulls took charge, the Sensex and Nifty posted their biggest single-day gains in three months during the trading session on January 9. The rally continued on January 10 with the Nifty touching a fresh record high of 12,311.20.

"The index formed a bullish outside bar for the past week. This shows the overall trend for the index continues to be strong. However, the market can continue to remain volatile in the near term. Further consolidation in the range of 12,300-12,000 cannot be ruled out in the sessions to come," said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.


On the global front, US stock indexes registered record closing highs as optimism about a US-China trade deal firmed. It was also helped by easing concerns over tensions between the US and Iran.

Last week, the Sensex rose 135.11 points (0.32 percent) to end at 41,599.72, while the Nifty added 30.15 points (0.24 percent) to end at 12,256.8.

Foreign institutional investors (FIIs) sold equities worth Rs 1,154.75 crore, while Domestic Institutional Investors (DIIs) bought equities worth of Rs 1,203.37 crore.

In the past week, the Indian rupee rose 86 paise to end at 70.94 on January 10 against its January 3 closing of 71.80.

"Markets will first react to the IT major, Infosys, results in the early trade on January 13. We reiterate our positive yet cautious approach on the benchmark index and suggest awaiting a decisive breakout above 12,400 in Nifty for a sustainable up move," said Ajit Mishra, VP - Research, Religare Broking.

"Meanwhile, volatility would remain high on the stock-specific front due to prevailing earnings season and global uncertainty so plan your trades accordingly," he added.

The BSE small-cap index added 1.13 percent, BSE large-cap index was up 0.27 percent and the BSE mid-cap index rose 0.29 percent while in the past week.




On the BSE, HDFC Bank added the most in terms of market value, followed by UltraTech Cement and Reliance Industries. On the other hand, ONGC lost the most in terms of market value.


The Nifty Realty index outperformed the sectoral indices with a gain of 3.6 percent during the week.


Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Moneycontrol News
first published: Jan 11, 2020 09:21 am

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