Sensex, Nifty end at 9-month high; add over 5% this week; here’s what analysts make of this week’s trade

Extending the winning streak into the fifth consecutive session, BSE Sensex and Nifty 50 ended at a nine-month high of Friday. BSE Sensex surged 553 points or 1.34 per cent to end at 41,893, while the broader Nifty 50 index ended at 12,263, up 143 points or 1.18 per cent. Investor sentiment was seen boosted by buying in Reliance Industries Ltd shares and bank stocks along with firm global cues. Out of 30 Sensex stocks, 21 stocks settled in the positive territory today. The broader markets underperformed the equity benchmarks. S&P BSE MidCap index gained 56 points or 0.36 per cent to finish at 15,405, while the S&P BSE SmallCap index gained over half a per cent or 82 points to end at 15,218. The volatility index fell 2.22 per cent to end at 20.50 levels.

Sanjeev Zarbade, VP PCG Research, Kotak Securities

Global equities rallied during the week shrugging off concerns of market volatility related to the outcome of the US elections. The US markets rose 7.1%, one of the best weeks in several months. Victories by Republicans in several key Senate races, thus lowering the odds of a “blue wave” and potential higher taxes and stronger regulations, have been cited by Wall Street strategists as a reason for the rally in tech stocks. Indian equities also bounced back with a gain of 5.7%. Positive macroeconomic data, rebound in GST revenues and robust power demand is driving economic recovery. At this juncture, investors are advised to be wary of market correction. Don’t rush to buy just because markets are making new highs, is our suggestion

Rajesh Palviya, Head Technical & Derivatives, Axis Securities

Nifty has gained almost 5.25 per cent during the week and banking stocks have shown the outperformance in last few trading sessions. Banknifty gained almost 12 per cent during the week. The strong FII flows and quarterly earning are driving the market and kept market sentiment higher. Nifty Weekly chart suggests that now if it continues to trade above 12100 it may hit all time high level very soon and can see level around 12400-12500 in near-term, while 12100 and 12000 are likely to act as immediate support level for any minor corrective action. On derivative front PUT writers are aggressive on 12100 and 12000 strike price which indicates base is shifting higher.

Vinod Nair, Head of Research at Geojit Financial Services

Markets were surging consistently over the week given favorable economic data and expectations of support measures from the upcoming Fed meeting outcome. Indian benchmark indices have continued their strong momentum amidst increasing concerns of pandemic which was supported by a good set of quarterly numbers. Majority of gains for the index were contributed by the Banking sector, given good growth in collections and assets. Further, volatility was very high over the week as the US election acted as a catalyst for the same.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

12200 was a resistance level for this month’s expiry. We have successfully crossed and closed above that. This should push the Nifty to its next level which is 12400. The macro trend of the index is positive and any dip or correction can be utilised to buy into this market. The Nifty has a very good support at 11500.