The stock markets closed on a buoyant note at the end of trading session and week on May 20. All the sectoral indices ended in the green with metal, pharma, capital goods, PSU bank and realty indices up 3-4 percent each.
Index majors Reliance Industries and HDFC twins saw robust buying, helping the benchmarks.
At close, the Sensex was up 1,534.16 points or 2.91 percent at 54,326.39. The broader Nifty was up 456.80 points or 2.89 percent at 16,266.20. About 2,468 shares have advanced, 801 shares declined, and 111 shares are unchanged.
All the Sensex firms ended in the green, with Dr. Reddy's, Reliance Industries, Tata Steel, Nestle, Larsen & Toubro, Axis Bank, IndusInd Bank, Sun Pharma, State Bank of India, and HDFC emerging as the biggest gainers.
Around 48 stocks out of Nifty 50 closed in green which suggest broad-based buying.All the sectoral indices are trading higher with metal, pharma, PSU bank andrealty indices up 2-3 percent each. Stocks like Dr Reddy, JSW Steel, Nestle Industries, Tata Motors, Tata Steel were the top gainers. Shree Cements and UPL were the only two losers.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, said, the stockmarket took a complete U-turn from Thursday's slump as bargain hunting following the recent crash and recovery in other Asian indices bolstered the sentiment back home. China's central bank cutting the 5-year loan prime rate to 4.45 percent from 4.6 percentand easing of COVID-related restrictions also provided a major leg-up to the market. Technically, after a sharp price correction, the Nifty eventually took the support near 15,750 and bounced back sharply. On daily charts the index has formed a double bottom formation and, on weekly charts, after a long time it has formed a long bullish candle, indicating further uptrend.
On weekly charts, the Nifty has reclaimed 16,000 and is comfortably trading above the 10-day SMA. The reversal formation is likely to continue if the index succeeds to trade above 16,000 and above the same it could move up to 16,400. Further upside may continue, which could lift the index up to 16,550. However, below 16,000, upside would be vulnerable and the index could hit the level of 15,800-15,700, he said.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, After witnessing sharp decline over the past two weeks, the equity markets ended this week on a positive note. However, following global cues, the India equity markets large volatility. Benchmark indices like Sensex 30 and Nifty 50 saw gains between 2-3 percent. Overall market breadth was positive with gains witnessed across mid-cap, small-cap and most sectoral key indices. Metal sector rebounded sharply post steep correction in recent weeks. BSE IT index was down in an otherwise positive market this week. FII’s continued with their selling in India.
The markets remained wary of global growth-inflation expectations. With result-season coming towards the last leg, the focus will be more on the macro data points. Monetary policy tightening action by Central Banks globally amid high inflation will continue to weigh on market sentiments, added Chouhan.
Palak Kothari, Research Associate, Choice Broking, said, the Nifty50 recouped the previous day’s losses andended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day. However, Bank Nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 downby 5.94 percent. he Nifty has formed Open Bullish Marabozu on a daily time frame whichindicates upside movement momentum for an upcoming session. Moreover, Nifty has been trading in a range of15,750-16,410 levels throughout the week crossing either side can direct further direction.
Kothari said, the Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen. However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart whichsuggest a northward journey in the counter. The Nifty may findstrong support around 16,000 levels, while on the upside 16,410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33,200 levels while resistance at 34,800 levels.
Asian markets close in green
Asian markets in Hong Kong, Shanghai, Seoul, and Tokyo finished in the green.
Equity exchanges in Europe were also trading with significant gains in the afternoon session.
Stock markets in the US had ended lower on Thursday.
Crude prices dip
International oil benchmark Brent crude dipped 0.11 percent to USD 111.9 per barrel.
FIIs data
Foreign institutional investors offloaded shares worth a net Rs 4,899.92 crore on Thursday, as per stock exchange data.
