Opening Bell: Sensex, Nifty rise on strong global cues; Nifty bank reclaims 29K
A small negative candle has been formed on March 14, with minor lower shadow at new swing high of 11,383 levels. Technically, this pattern signals range bound action.
On account of dollar gaining against major global currencies, dealy in Brexit vote and positive developments in the China-US trade talks, the Indian indices edged high in early morning trade. The BSE Sensex rose 167 points to 37,921 levels while the 50-stok Nifty rose 52 points to -11,396 levels. The Nifty Bank index reclaim 29,000 levels by adding 184 points from Thursday close.
Speaking on the Indian indices trend Nagaraj Shetti, Technical Analyst at HDFC securities told Zee Business online, "A small negative candle has been formed on March 14, with minor lower shadow at new swing high of 11,383 levels. Technically, this pattern signals range bound action in the market at the highs." Shetti said that the near term trend of Nifty is positive, amidst a range movement. Still, there is no convincing indication of any downward reversal pattern at the highs. Immediate resistance to be watched at 11,450 levels.
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Asked about the expected trend at the Dalal Street fundamental equity analyst Prakash Pandey, Director & Head of Research at Fairwealth Group said, "Nifty rallied almost 500 points in the matter of 7-8 trading session, so some consolidation and profit booking will be healthy for overall markets. Nifty put/call ratio which around 1.70 levels is also not giving any comfort to for the fresh longs positions on Nifty." On how mcuh correction in Nifty is expected Pandey of Fairwealth Group said that '60-80 points dip is good for intraday traders' citing, "FIIs buying of Rs 1500 in cash segments and that will protect Nifty from any big corrections." Pandey also said that Bank Nifty is extremely overbought in near term and risk/reward is not favoring the fresh long trades.
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IT, Tech, auto and realty setor indices led from the front in this bull's run on Dalal Street. IT major 3i Infotech Ltd shot up by around 6.3 per cent, shares of Intense Technologies skyrocketed by more than 7.5 per cent, MosChip Technologies counter rose near 3.25 per cent, Zen Technologies scrip surge 5.17 per cent while Xchanging Solutions stocks rose 6.4 per cent.
The BSE Tech index added around 0.4 per cent from its previous close. Tech major DB Corp Ltd stocks rose 2.9 per cent, Bharti Infratel and HCL Technologies went up by near 1.2 per cent, Tech Mahindra stocks went up near 1 per cent while Oracle Financial Services Software, NIIT Technologies, MphasiS and MindTree counters added more than half a per cent.
In the global markets, Asian stocks stepped ahead on Friday as sentiment improved on a report that more progress has been made in US-China trade talks and after UK lawmakers voted to delay a potentially chaotic exit from the European Union.
MSCI broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent. The Shanghai Composite Index added 1.3 percent. Japan's Nikkei climbed 1 percent and South Korea's KOSPI rose 0.9 per cent. But the S&P 500 dipped 0.1 per cent, snapping a three-day winning run, and the Nasdaq shed 0.2 per cent on Thursday in the wake of uncertainty over when a US-China trade deal would be reached.
In the currency market, the pound was steady at $1.3237, trimming some of the heavy losses suffered overnight. Sterling retreated 0.75 per cent on Thursday as investors geared up for British Prime Minister Theresa May to once more try and win approval for her Brexit deal.
The dollar held gains having snapped its four-day losing streak to a group of six major peers. The dollar index was little changed at 96.738 after rising 0.25 percent on Thursday to bounce back from a nine-day trough of 96.385. The greenback rose as US Treasury yields climbed from two-month lows marked earlier in the week, driven by corporate supply. The euro edged up 0.1 percent to $1.1311 after slipping 0.2 percent overnight.
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