Sensex climbed 174 points to close at its all-time high on Friday, tracking gains in index heavyweights Reliance Industries, Infosys and TCS amid a largely positive trend in global equities.
Amar Ambani, Senior President and Head of Research – Institutional Equities, Yes Securities said, the stock market is solely focused on the future. Hopes of a quick economic revival post unlock and expectation of large number of adult population vaccinated in 2021, are keeping markets excited. Q4 FY21 earnings have been encouraging, even after adjusting for the low base of March 2020.
"The broader market is very healthy. It is very likely that the top 10 heavyweights of the Sensex, which have been dormant for some time, will begin to participate. Already RIL has resumed its up move after a six month lull. This will add to the strength of Indian equities. Our target for Sensex is 60,000 by December 2021," he added.
On a weekly basis, again the Nifty50 jumped to the newer level of 15,834 after correcting to the level of 15,560. The Sensex 30 also managed to surpass its all-time highest level of 52,517 under the leadership of Reliance, TCS and Dr Reddy's.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities said, the Nifty / Sensex will have strong support at 15,450/15,500 (51,500) in the coming week. On the upside, however, 16,000/53,000 and 16,150 (53,500) seem to be gaining ground. The Nifty IT, Nifty Pharma and Nifty Metal indexes closed with a breakout in the positive territory.
"We witnessed subdued trading activity in the Bank Nifty, however, it has managed to close above the psychological levels of 35,000, which is positive for it. For the coming week, 34,500/34,300 would be major supports for the Bank Nifty and Resistance would be at 35,800/36,200 levels," Chouhan added.
Benchmark Indices closed on a positive note with Sensex closing at 52,474.76 (+0.69%) and Nifty 50 closing at 15799.35 (+0.39%), both the indices closed at new record-highs. Nifty 50 showed some resistance in the 15,800-15,850 zone, we believe a convincing closing above 15,850 levels will open the gates for 16,000 in Nifty 50. Strong buying is witnessed in Metal and IT stocks while some selling pressure is seen in selected FMCG and banking. Tata Steel and Coal India were the top gainers while L&T and HDFC Life were the top losers in Nifty 50 today. Immediate resistance levels for Nifty 50 are 15850 and 16000 while key support levels for Nifty 50 are 15500 and 15300.