Bullish momentum is seen for the near-term as the benchmark indices have taken support from the lower bands of statistical charts of Bollinger as well as trading above the 200-week moving average.
A momentum indicator STOCHASTIC trading with a positive crossover on the daily time-frame also indicates strength for the upcoming session. Overall, the Nifty index is taking support at 16,800 levels while it may find resistance at around 17,400 levels.
In the past week, market opened on cautious note as the major benchmarks witnessed a sharp downfall of over 2.2 percent on Monday amid concern over rising spread of Omicron variant. However, sentiment improved subsequently due to easing Omicron fear over the media reports that virus is less severe and requires less hospitalization.
Domestic investors used this opportunity to pile position in fundamentally strong stocks which corrected significantly in last few days as rising counts of Omicron played on the market.
Finally, Indian equity benchmark ended on a flat note as large gains in index heavyweight ‘Reliance Industries’ and IT stocks were offset by the losses in banking stocks as banking index witnessed sharp selling due to continued FPIs selling.
•FIIs continues to remain net seller this month and sentiments remain cautious as investors hope to see tightening of policy and smaller budget in coming years.
•Five IPOs were listed on Indian equity bourses this week, out of which three made a strong debut while two listed at discount.
•Going ahead, investors will continue to monitor the global covid-19 and economic data.
Top gainers
Nifty Gainers | CNBC TV18
•IT stocks remained under buying radar this week over strong future prospects. HCL Tech gained 8 percent this week amid report of block deal by promoters.
•Wipro surged 4 percent this week as company announced to acquire Edgile for $230 million to strengthen position in cyber security services area.
•Tech Mahindra surged on collaboration with Telefonica Germany.
•Cipla surged 6 percent after receiving permission to market Lanreotide injection.
Top losers
Nifty Losers | CNBC TV18
•Banking and financial stocks witnessed heavy sell-off during the week due to sharp selloff by FIIs. HDFC Ltd and Axis bank lost over 3 percent this week.
(Ankit Pareek, Research Analyst, Choice Broking)
