Sensex breaches crucial level of 49,000-mark on extended buying support; Nifty may cross 15,000-15,050 levels in near-term

Sensex breaches crucial level of 49,000-mark on extended buying support; Nifty may cross 15,000-15,050 levels in near-term

FPJ Web DeskUpdated: Friday, May 07, 2021, 04:39 PM IST
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NSE India |

The Nifty-50 managed to climb the wall of worries and has posted weekly gains of 1.3 percent. Indian markets are witnessing wild swings in the face of surging COVID-19 cases that have prompted several states to extend restrictions on movement by 1-2 weeks. The broader markets are seeing very good action due to the result season.

Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, said the NSE MidCap and BSE Small Cap Index have outperformed the Nifty-50 this week. Strong data from the US and China is helping global markets to remain on the higher side. The RBI announced fresh measures this week to support the economy from the second wave of COVID. Support from the central banks in these difficult times is seen positively by the market. Q4 Earnings are coming out better than expected which is also helping stock prices to move up. Going by the open interest in the F&O segment 14,000 to 15,000 is the near-term range, any decisive move could take place only beyond this range,” added Oza.

Nifty Metal was the top leader with 5 percent gains, the rest of the indices also settled at the green note. The most active counters Tata Steel, Hindalco, JSW Steel, Adani Port which were also the top gainers for the day while Tata Consumer, Bajaj Auto, HeroMoto were the prime laggards. Sumeet Bagadia, Executive Director, Choice Broking, said "Technically, the nifty index has moved up after taking a good support at 100 days Simple Moving Averages and Middle Bollinger Band formation, which indicates bullish strength in the index. Moreover, an oscillator Stochastic & MACD also suggested positive crossover on the daily chart. At present, the Nifty index is holding support at 14,650 levels while an upside resistance seems at 14,950 levels."

In the last few weeks, on a weekly closing of the market, the Nifty/Sensex failed to sustain at higher levels, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. “The market breadth was healthy when it opened but due to some profit-taking in financials, auto and technology companies, the Nifty closed at opening levels. It has formed an indecisive formation on a daily chart, however, on a weekly basis, Nifty/Sensex gained 400/1200 points from the lowest levels. The positive part of the week that the Nifty-50 closed above the crucial resistance of 14800/49000. Based on it, Nifty/Sensex would climb to a minimum of 15000/15050 levels. However, the market would pick up the momentum, if it crosses 15,150 levels.

On the downside, 14600 and 14500 would be major supports. The bank-Nifty closed below the psychological barrier of 33,000 that would keep the financial sector selective. During the week, the FIIs sold heavily in the cash segment to the tune of 5500 crores that should reverse immediately otherwise it would minimize the upside for the market. In the coming week, again our focus should be on metals and pharmaceuticals stocks. From the defensive, we prefer the technology sector over the FMCG sector.”

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