The broader indices' performance remained mixed this week as the mid- and large-cap indices rose 1.5 percent each, while the small-cap index ended on a flat note, underperforming the main indices.
For the week, the BSE Sensex index added 1293.65 points or 1.59 percent to finish at 82,500.82, and the Nifty50 rose 391.1 points or 1.57 percent to end at 25,285.35.
After remaining net sellers for the last 12 weeks, the Foreign Institutional Investors (FIIs) turned net buyers this week as they bought equities worth Rs 2,975.53 crore. On the other hand, Domestic Institutional Investors (DII) remained net buyers in the 25th week, as they purchased equities worth Rs 8,391.11 crore.
Among sectors, Nifty Capital Market and IT indices remained top performers with a 5 percent gain, followed by Nifty Healthcare index (up 3 percent), Nifty Realty index (up 2.3 percent), Nifty Private Bank, Nifty Consumer Durables, and Nifty Pharma up 2 percent each. However, the Nifty Media index shed nearly 3 percent.
"In the last week, the benchmark indices continued their positive momentum. The Nifty ended 1.57 percent higher, while the Sensex was up by 1290 points. Among sectors, the Capital Market and IT indices outperformed, with the Capital Market gaining 5.20 percent and the IT index rallying 4.80 percent, whereas the Media index lost the most, shedding 2.75 percent," said Amol Athawale, VP Technical Research, Kotak Securities.
"During the week, the market successfully cleared the 25,000/81700 mark, and post-breakout, it intensified its positive momentum. Technically, it has formed a long bullish candle on the weekly charts and is also trading above the 20-day SMA (Simple Moving Average), which is largely positive. We are of the view that the 20-day SMA and the 25,000/ 81700 level will act as crucial support zones for short-term traders."
"As long as the market is trading above 25,000/81700, the uptrend is likely to continue. On the higher side, the market could rally to 25,450–25,500/82900-83100. Further upside may also continue, potentially lifting the index up to 25,700/83700. Conversely, if the market falls below 25,000/81700, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions," Athawale said.
"For Bank Nifty, the short-term trend is positive. For trend-following traders, 56,200 and 55,800 would act as key support zones. On the higher side, 57,000 and 57,500 could serve as crucial resistance levels for the bulls," he added.
The BSE Small-cap index ended flat. Jindal Photo, Indo Thai Securities, Indraprastha Medical Corporation, GM Breweries, Sky Gold and Diamonds, Dreamfolks Services, Stylam Industries, Infibeam Avenues, Salzer Electronics, SpiceJet, Avalon Technologies, Indef Manufacturing, South Indian Bank were up between 15-41 percent. However, Shankara Building Products, Paushak, Hemisphere Properties India, John Cockerill India, Nelcast, Lumax Auto Technologies, VTM, Praveg fell between 10-22 percent.
Where is Nifty50 headed?
Ajit Mishra – SVP, Research, Religare Broking
Technically, the Nifty is once again approaching its trendline resistance around 25,450, with immediate support now placed near 25,000. A decisive breakout above this hurdle could further reinforce the recovery and open the path toward the June highs near 25,669.
We expect rotational buying across key sectors to continue providing trading opportunities; however, traders should emphasize prudent risk management given the likely volatility during the ongoing earnings season.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty remained strong on Friday as it broke out of the recent consolidation range. The trend continues to stay positive as it is sustaining above the critical moving average.
The setup looks favorable for a further rise in the short term. Any dip would provide a good opportunity to enter long trades.
On the higher end, the Nifty may move towards 25,500–25,550, while on the lower end, support is placed at 25,150. A fall below 25,150 could weaken the trend slightly.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Nifty on the weekly chart formed a long bull candle that has almost engulfed the upper area of the long bear candle of September end. We also observe bullish higher highs and lows formations as per the weekly timeframe chart.
The underlying trend of the market remains positive. Nifty is expected to advance towards the important resistance of around 25400-25450 levels (previous swing high of 18th Sept and the down-sloping trend line) by next week. Immediate support is placed at 25150.
Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities
The index is now just 0.64% below its previous swing high of 25449, made on 18th September, highlighting the potential for further upside. On the weekly chart, Nifty closed above the 20-week EMA and above the previous week’s high of 24905, reflecting underlying strength.
Technical indicators are also supportive. RSI, after turning flat, has resumed its upward trajectory and closed above 60, indicating bullish momentum with room for further gains. MACD remains above the signal line and zero line with green histogram bars, suggesting sustained buying pressure and continuation of the uptrend in the near term.
Looking at key levels, the 25,400–25,450 zone will act as an immediate resistance for the Index. If the index manages to give a follow-through move above the level of 25,450, the pullback can continue further till the 25,600 level. While on the downside, the zone of 25,200-25,150 will act as a crucial support for the Index.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
