Strap: This week, the BSE Sensex surged 189 points, or 0.26%, at 72,831.94 during the week ended on March 22, 2024. While the Nifty gained 73 points, or 0.33%, to 22,096.75.
Indian equity markets ended the last week in green amid global volatility. However, a rally on the final two sessions of the week helped markets to close with marginal gains.
Optimistic HSBC India Composite PMI Output Index data also supported the market sentiments. HSBC Flash India Composite PMI Output Index which measures YOY change in the combined output of India's manufacturing and service sectors, rose to 61.3 in March.
The BSE Sensex surged 189 points, or 0.26%, at 72,831.94 during the week ended on March 22, 2024. While the Nifty gained 73 points, or 0.33%, to 22,096.75.
Sector-wise, the BSE Realty index surged the most (5.3%) during the week gone by. While BSE Metal index registered a gain of 4.9% followed by BSE Auto, which jumped 4.2%. On the other hand, the BSE Information Technology index fell 5.5%.
As many as 31 stocks in the Nifty 50 index delivered a positive return for investors in the week. With a weekly gain of 7.5%, Maruti Suzuki India emerged as the top gainer in the index. It was followed by Tata Steel (7.3%), Bajaj Auto (7.1%), Apollo Hospitals (6.5%), and Eicher Motors (6.3%). JSW Steel and Mahindra & Mahindra also advanced by over four percent.
On the other hand, Infosys, Tata Consumer Products, and Tata Consultancy Services declined 7.7%, 7.6%, and 7.2%, respectively.
Market Macros: Vinod Nair, Head of Research at Geojit Financial Services says, "Amidst mixed signals from global peers, investor sentiment remained volatile, influenced by uncertainties surrounding pivotal policy decisions from major central banks. The unexpected interest rate hike by the BoJ after 17 years and the ECB's choice to maintain rates contributed to subdued market sentiment. However, the market rebounded following the Fed's indication to proceed with three interest rate cuts this year, despite inflation exceeding the long-term target.
Nair added that Last week's Mid & Smallcap could recover half as buying improved led by continued DIIs & FIIs inflows. The IT sector faced headwinds driven by the global slowdown in spending. Investors redirected attention towards the realty sector, which emerged as the top performer of the week.
“The bounce is expected to continue in the short-term as traders punt to buy when the market is trading at oversold territory. However, concerns persisted regarding inflated valuations in mid and small-cap stocks. And large caps are expected to outperform in the medium term" Nair said.
Nifty outlook: According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty continued with its follow-through up move on Friday and closed the day higher by 84 points amidst volatility. A reasonable positive candle was formed on the daily chart with minor upper shadow. The market is facing strong resistance around 22200-22300 levels and a decisive break above this hurdle could open next round of sharp upmove in the market.
Shetti further added that the Nifty on the weekly chart formed a small positive candle with long lower shadow. The weekly support of 10week EMA has been regained after intra-week downside violation at 21950. This is positive indication.
“The short-term trend of Nifty remains positive. A sharp move above the hurdle of 22200-22300 levels could pull Nifty towards new all-time highs around 22550 levels. Immediate support is at 22880 levels,” Shetti said.
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