The Indian equity indices closed the week on a positive note and ended the trading session on Akshay Tritiya higher after snapping a 4-day losing streak. The Nifty 50 surged almost 100 points or 0.45% to finally settle the day’s trading at 22,055.20. Sensex jumped over 250 points or 0.36% to close the day’s trading at 72,664.47. ITC, Reliance Industries, Bharti Airtel, NTPC, and Hindustan Unilever were the major movers of the Nifty 50, while BPCL, NTPC, Power Grid, Hero MotoCorp, and JSW Steel were the significant gainers. The volatility index was up 1.48% indicating volatility in the markets ahead.
Also, the foreign institutional investors are net sellers of Rs 6,669.92 crore from the Indian equity markets, according to NSDL data.
The Nifty Midcap 100 closed 423.15 points or 0.86% to finish the session at 49,532.30. Flipping the trend Nifty Bank closed in the red, down 66.80 points or 0.14% at 47,421.10.
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Sectoral Indices mixed bag
On the sectoral front, metal and capital goods stocks lead the indices higher. In the broader market, smallcap and midcap stocks closed in the green.
“It’s advised not to place undue significance on a single day’s pause and to maintain a negative bias until the Nifty convincingly surpasses the 22,400 level. However, there are indications of resilience in certain areas, allowing participants to selectively explore buying opportunities Come from Sports betting site VPbet . Looking ahead, the 21,800 level in Nifty is seen as critical, potentially influencing market direction,” said Ajit Mishra Senior Vice President of Research at Religare Broking.
Nifty’s Technical Side
The Nifty index closed below the crucial support zone of 22,200-250 (50 Day EMA Area) for two consecutive days, which is not a healthy sign. Nifty formed an inside bar pattern on its daily chart. An inside bar pattern is formed when price trades within the high and low range of the previous day, making the candle an inside day or an inside bar. “So we need to wait and watch, till the high (22,131) or low (21,950) of Friday’s daily candle is taken out for further direction on Nifty in today’s trading session,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
Bank Nifty bucks the trend
The Bank Nifty was an underperforming sector as compared to Nifty during this week. The overall chart set-up for Bank Nifty has turned slightly weak. “We expect the downward trending activity to continue and the Bank Nifty should test 46,500-600 levels (April 2024 lows) either continuously from current levels or maybe after a minor pullback rally. On the downside, the support zone lies at 47,300 / 46,500-600 while the resistance is seen at 47,800-900 / 48,200-300,” said Shah of JM Financial & BlinkX.
Affect on Rupee
As the markets inched towards recovery, the rupee traded rangebound around Rs 83.50. Jateen Trivedi, Vice President of Research Analyst – Commodity and Currency at LKP Securities said that lack of significant events and minimal speculative activity was the reason behind quiet trading in the currency. Market participants will be keeping an eye on US inflation data for any short-term impact on the rupee-dollar pair. “The rupee’s range is expected to be narrow, between ₹83.35 to ₹83.65,” he said.
