Nifty surged 3% in past two days

Nifty has surged 3 per cent in the last two days and one can expect this optimism to continue next week on the back of a liquidity-driven rally, Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said on Friday.

Nifty continued its northbound journey to close near day's high with gains of 274 points (+1.3%) at 21,456 levels on Friday. Sector-wise, it was mixed bag with buying seen in IT, PSU bank, metals and oil & gas stocks, he said.

Equity markets are witnessing a Santa rally globally post the dovish outlook by US Fed and fall in the dollar index. 

This, along with strong FIIs buying and healthy macros, supported the positivity in the Indian markets, Khemka said.

Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty's upward momentum persists with the bulls maintaining control in the market.

Achieving a new all-time high, the index has marked its seventh consecutive weekly gain. The prevailing sentiment appears strongly in favour of the bulls, as indicated by the absence of any reversal signals on the technical charts, he said.

Resistance is observed at 21,500, while a potential further rally in the Nifty could occur upon breaching this level. Support is currently positioned at 21,300.