The market gained 1.5 percent in the week ended September 24, with the Sensex marking yet another milestone of 60,000 on the back of supportive domestic and global factors.
On September 23, the Federal Reserve, as expected, left interest rates and bond-purchase programme unchanged. The US central bank, however, signalled that tapering of the bond-buying was closer and a rate hike may come sooner than expected.
At home gains in IT and realty, strong liquidity and growing optimism over economic revival saw Indian benchmark indices the Sensex and the Nifty touch new highs of 60,333 and 17,947.65, respectively, during intraday trade on September 24.
For the week, the Sensex added 1,032.58 points (1.75 percent) to close at 60,048.47, while the Nifty50 rose 268.05 points (1.52 percent) to end at 17,853.20 levels.
The broader indices, however, underperformed the benchmarks. The BSE midcap index added 0.59 percent, while the smallcap index ended flat.
Among the smallcaps, 46 stocks, including V2 Retail, Acrysil (India), Cantabil Retail India, HLE Glascoat, Gujarat Themis Biosyn and TGV Sraac, gained up to 27 percent.
Also read: Sensex closes above 60,000 on supportive cues; realty index gains over 20%
However, ABLS International Services, Hexa Tradex, Jaiprakash Associates, Balmer Lawrie Investment, AGC Networks, Gateway Distriparks, Prime Focus and Easy Trip Planners slipped 10-24 percent.
“With the Sensex crossing the crucial 60,000 mark, the frontline indexes closed higher for the week, supported by better clarity on the Fed tapering of the bond-buying programme after the FOMC statement which said that the tapering may happen soon, and the broad indications that the rate action may be much later next year,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
Also read: Journey of Sensex: From 1,000 to 60,000 in over 31 years
While banking and IT zoomed during the week, most sectoral indexes, including healthcare, metals, FMCG and consumer durables, closed in the red.
“Ahead of the weekend, with the depth of the damage which may be caused by Evergrande still not clear and some economic numbers from the US likely to be released, the markets may witness some amount of volatility during the course of the next week, and also some profit booking,” Thomas said.
The BSE 500 index rose 1 percent with 27 stocks, including Godrej Properties, Oberoi Realty, Zee Entertainment Enterprises, DLF, Gujarat Alkalies and Gujarat Narmada Valley Fertilizers & Chemicals, gaining 10-34 percent.
“The index closed a week at 17,853 zone with gains of one and half percent on weekly basis and formed a bullish candle on the weekly chart for a second consecutive week,” said Rohit Singre, Senior Technical Analyst at LKP Securities.
“For the upcoming session, the index has shifted its support zone to 17,750-17,650, so any dip near mentioned support zone will be again a fresh buying opportunity, with keeping stop out level below 17,650 zone,” he said.
If the Nifty manages to hold the levels, it can march towards 18,000k, Singre said. “Resistance is still placed around 17,900-18,000 zone where traders can lock some of their long gains,” he added.
Where is Nifty50 headed?
Mohit Nigam, Head-PMS, Hem Securities
The Nifty has sustained above 17,850 and we expect this momentum to continue, which may lead to 18,000 levels in the near term and 17,650 may act as immediate support.
We believe that the market trajectory continues to be positive and any significant dip should be utilised to invest in quality stocks for good returns.
The volatility seen in the markets may seep into the forthcoming week as well, given the monthly expiry towards the latter half.
Considering the increased concerns around chip shortage and the resultant dampened sales prospects, monthly sales numbers of the automobile sector are sure to grab eyeballs to determine a future trend in auto stocks.
With no major domestic economic data expected in the following week, markets may be dominated by global news flows such as another interest payment of struggling Chinese developer Evergrande’s bond is due on September 29.
In this volatility, investors should invest only in fundamentally sound stocks as markets are fickle and unpredictable.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.