BSE Telecom, Nifty Realty top gainers on BSE, NSE this week; global cues may continue to drive D-street next week too

Kicking off FY23 in style, domestic equity benchmarks Nifty50 and the Sensex ended Friday with gains of 1.18% and 1.21% respectively. The former closed near 16,700, while the latter added more than 700 points to its previous closing on back of strong show by banking, realty and oil & gas stocks. 

The 12-share Nifty Bank too gained over 800 points to go past 37,100. Similarly, Nifty mid cap and small cap indices settled around 1.5% higher. Sectorally, Nifty Pharma and Healthcare closed flat with negative bias, others ended positive on a day which saw the headline indices making last hour recoveries.

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Meanwhile, out of 5 trading sessions this week, the market witnessed positive closing on four occasions. Nifty50 gained 3% and the Sensex ended higher by 3.3% for the week ended April 1. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said Indian equity markets gave positive returns this week. Globally too, equity markets remained broadly resilient led by optimism on progress in Russia-Ukraine negotiations, he said. 

"Investors cheered the strong GST numbers for March, while reports about Russia started pulling out some troops from the Ukraine capital also aided the sentiment," said Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd.

How Indices fared this week

Among the indices on the NSE and BSE, Nifty Realty with gains of 5.7% emerged as top gainer on the former, while S&P BSE Telecom rose 6.1% to lead indices on the BSE this week. 

Besides, all banking and financial service-related indices were seen leading on the NSE this week. Nifty Private Bank, Nifty Financial Services, Nity Bank, Nifty PSU Bank surged 5.2%, 5.1%, 4.9% and 4.8% respectively on the NSE for the week ended April1. 

On the BSE, S&P BSE IPO (5.8%), S&P BSE Realty (5.6%), S&P BSE Private Bank (5.3%) and S&P BSE Bankex (5%) were other top performers this week. 

Technical Check

After a 17450 breakout, the Nifty has maintained breakout continuation formation which is broadly positive, said Athawale. In addition, strong bullish candles on weekly charts along with higher bottom formation also support further uptrend from the current levels, he said. 

Kotak Securities expert was of the view that traders may prefer to take cautious stance near the 17800-resistance level due to the market being in an overbought situation.  

"The current texture is likely to continue unless the index slips below 17450 or 10-day SMA. Above the same, we could see Nifty touching the level of 17800 and further upside could lift the index up to 17935. On the flip side, 10-day SMA or 17450/58400 would be the sacrosanct level for the positional traders and below the same, the index could slip to 17350-17200 levels," he added. 

Triggers for next week

Stock market is expected react in line with global cues and geopolitical tensions arising out of Russia-Ukraine war. 

"Markets are largely following global cues and we expect this trend to continue in the absence of any major domestic event. Any favourable development on the Russia-Ukraine front would further fuel the rally. Among the sectors, the focus should be on banking, which has finally shown some attraction," said Ajit Mishra, VP - Research, Religare Broking Ltd. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)