The market gained 1.5 percent within the week ended September 24, with the Sensex marking yet one more milestone of 60,000 on the rear of supportive domestic and global factors On September 23, the Federal Reserve System , needless to say , left interest rates and bond-purchase programme unchanged. The US financial institution , however, signalled that tapering of the bond-buying was closer and a rate hike may come before expected At home gains in IT and realty, strong liquidity and growing optimism over economic revival saw Indian benchmark indices the Sensex and therefore 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 shut at 60,048.47, while the Nifty50 rose 268.05 points (1.52 percent) to finish 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 However, ABLS International Services, Hexa Tradex, Jaiprakash Associates, Balmer Lawrie Investment, AGC Networks, Gateway Distriparks, Prime Focus and straightforward 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 therefore the broad indications that the speed action could also be much later next year,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
While banking and IT zoomed during the week, most sectoral indexes, including healthcare, metals, FMCG and durables , closed the red Ahead of the weekend, with the depth of the damage which can be caused by Evergrande still not clear and a few economic numbers from the US likely to be released, the markets may witness some amount of volatility during the course of subsequent 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 every week at 17,853 zone with gains of 1 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 are going to be again a fresh buying opportunity, with keeping stop out level below 17,650 zone,” he said If the Nifty manages to carry the amount , it can march towards 18,000k, Singre said. “Resistance remains placed around 17,900-18,000 zone where traders can lock a number of their long gains,” he added.
Where is Nifty50 headed?
Mohit Nigam, Head-PMS, Hem Securities
The Nifty has sustained above 17,850 and that we expect this momentum to continue, which can cause 18,000 levels within 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 take a position in quality stocks permanently returns.
Samco Research
The volatility seen within the markets may seep into the forthcoming week also , given the monthly expiry towards the latter half Considering the increased concerns around chip shortage and therefore the resultant dampened sales prospects, monthly sales numbers of the car sector are bound to grab eyeballs to work out a future trend in auto stocks With no major domestic economic data expected within the following week, markets could also be dominated by global news flows like another interest payment of struggling Chinese developer Evergrande’s bond is due on Michaelmas In this volatility, investors should invest only in fundamentally sound stocks as markets are fickle and unpredictable.
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