The Indian stock market closed in the green, with Sensex and Nifty rising up to 0.4% on Friday a day after the sharp crash that wiped off a significant portion of investors’ wealth.
Sensex rose 315 points to end Friday’s session at 73,896 while Nifty 50 gained 77 points to close at 23,140.50. Broader markets remained mixed, with Nifty Midcap 100 in red and Nifty Smallcap 100 in green.
Axis Bank shares jumped around 3% to lead gains on Sensex, while M&M and Asian Paints shares rose around 2% each. Bajaj Finance, HCL Tech and Titan shares meanwhile gained over 1% each. Bucking the trend, Trent and Infosys shares fell around 1% each.
Among the sectors, Nifty Auto and Nifty Consumer Durables gained nearly 1% each, while Nifty IT, Nifty Pharma and few others slipped into the red. The overall market breadth turned negative, with NSE seeing 1,925 advances against 1,594 declines, while 128 stocks remained unchanged.
What lies ahead for Dalal Street?
Volatile crude and bond yields at elevated levels kept the market recovery capped, said Vinod Nair, Head of Research at Geojit Investments. He noted that concerns over inflation, foreign fund outflows and pressure on EM currencies remained intact. Selective bargain hunting after the recent pullback helped the market retain a positive bias, though gains remained confined to a narrow trading range.
The ability of benchmark indices to sustain above the psychologically important 23,000 level reflects domestic resilience and support from strong domestic liquidity, Nair said. “While elevated oil prices and global yields may continue to temper risk appetite in the near term, improving valuations and resilient domestic growth prospects are encouraging selective accumulation, helping the market absorb external pressures more effectively,” he added.
Technical view on Nifty
Nifty closed higher, recovering modestly after the sharp decline in the previous session, said Rupak De, Senior Technical Analyst at LKP Securities. Technically, the index continues to form lower highs and lower lows and remains below its key moving averages, keeping the short-term structure weak, he noted, adding that the RSI has turned bearish on the weekly chart, indicating continued downside momentum.
“On the downside, 23,000 remains the immediate support, followed by 22,700. On the higher end, 23,200–23,300 is the immediate resistance zone. A sustained move above 23,300 could improve the technical setup, while a decisive break below 23,000 may resume the downtrend,” the analyst said.
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