Sensex reverses two days of sluggish trade, ends above 56k for first time on renewed buying

Sensex reverses two days of sluggish trade, ends above 56k for first time on renewed buying

FPJ Web DeskUpdated: Friday, August 27, 2021, 04:21 PM IST
article-image
The benchmark indices closed trading session on Friday with gains./ Representational image |

The benchmark indices closed trading session on Friday with gains. Sensex ended 0.31 percent higher at 56,124 while the NSE Nifty 50 closed the day at 16,705, gaining 0.41 percent. Bank Nifty closed flat with a positive bias 0.03% at 35,627.

"Nifty closed at its lifetime high level today. Volumes in Nifty were lesser than its average volumes which brings in a possibility of a correction. Nifty has strong support in 16,550-16,580 range. The trend in Nifty remains bullish and any correction can be used to buy with strict stop loss," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Palak Kothari, Research Associate, Choice Broking, "On the technical front, the Index has made a bullish candle on the weekly chart which suggests further upside movement in the counter. Moreover, the Index has been trading above 21&50 DMA, which suggests strength for the upside. Momentum Indicator MACD is also showing positive crossover on daily time frame which further adds strength in the index. At present, the Nifty index has immediate resistance at 16730 levels while downside support shifted up to 16,500 levels."

Markets underwent volatility as seen in the past few sessions, but finally logged impressive gains thanks to gains in IT, Metal & Energy stocks. Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, post the short-term correction, Nifty has maintained higher high and higher low series formation and after a strong pullback rally, the index is currently trading near the breakout level. The texture of the chart suggests that the 10 day SMA or 16550 would be the sacrosanct level for the breakout. If the index crosses the level, the uptrend could continue up to 16825-16950 levels. On the flip side, dismissal of 16,550 may trigger temporary weakness till 16375-16300 levels.

"Meanwhile, the Bank Nifty index has been consistently taking support near the 50 day SMA, and 35,200 would be the key support level for the index and above the same the index is likely to outperform in the near future," he added.

Mohit Nigam, Head-PMS, Hem Securities said, "This week witnessed strong buying in metals and capital goods and many heavyweights contributed in pushing Nifty above 16,700 twice this week, Friday being a very strong close. Markets around the globe will closely track the Jackson Hole symposium which will be held later this evening and the Fed Chairman's speech is expected to cover bond purchase tapering plan and US economic outlook.

Nifty closed the day and week almost at the day/week’s high, said Deepak Jasani, Head-Retail Research, HDFC Securities. "On a weekly basis, it gained 1.55 percent with Metals, IT, Pharma and Banks leading the gains. Nifty also closed at the highest ever on daily and weekly basis. Even among the largecaps, advances were seen in many bluechips which is heartening. Advance decline ratio has improved over the past two days, bringing some relief to participants. If Nifty opens above 15722 and remains high for the first hour of trade on Monday we could see further improvement in the Nifty as well as the broader markets. 16543 on the downside could be a crucial support."

RECENT STORIES

Ecos (India) Mobility Submits Draft Paper To SEBI For IPO Fundraising

Ecos (India) Mobility Submits Draft Paper To SEBI For IPO Fundraising

How Data Is Enabling Innovation In Biomedical Devices For Healthier Lives

How Data Is Enabling Innovation In Biomedical Devices For Healthier Lives

Heralding Mediated Dispute Resolution Over Litigation: The Mediation Act, 2023, Future Of Indian...

Heralding Mediated Dispute Resolution Over Litigation: The Mediation Act, 2023, Future Of Indian...

Force Motors Shifts Gears: Exiting Tractors And Connected Activity Business At The End Of FY24

Force Motors Shifts Gears: Exiting Tractors And Connected Activity Business At The End Of FY24

'From Shop Floor To Success': Anand Mahindra Backs Elon Musk's Call For Recognition Of Manufacturing...

'From Shop Floor To Success': Anand Mahindra Backs Elon Musk's Call For Recognition Of Manufacturing...