Weekly market wrap: Sensex, Nifty end holiday-shortened week higher by up to 2%; Nifty Realty spurts 6%
Despite the recent pullback amid the Adani saga, Indian equities ended higher as valuations turn favourable in the largecaps.
In a holiday-shortened volatile week, Indian equities after staging a decent comeback in today's session (November 22) pared all its losses and gained on both the headline indices. Nifty for the week to November 22 ended climbed 1.59 per cent, while the BSE 30-share Sensex ended nearly 2 per cent higher.
The gains came as the D-Street largely shrugged-off concerns around the Adani allegations by the US court.
Also, sentiment turned optimsitc amid expectations of better earnings going forward.
Vinod Nair, Head of Research, Geojit Financial Services remarked, "The market witnessed a significant broad based rally, from the oversold territory, predominantly led by large-cap stocks, as their valuations appeared appealing with expectations of improvement in corporate earnings in the second half of the fiscal year."
Positive momentum was also observed in global markets, due to modest decline in Japan's October inflation and 39 trillion yen stimulus package. Moderation in global & domestic political drama provided a relief to the domestic market, he added.
Top sectoral gainers and losers
Of the 13 major indices, Realty jumped sharply by as much as 6 per cent during the week, while Auto and IT followed with gains of up to 3 per cent, while Nifty Media and Nifty Energy indices ended in the red.
Top Nifty gainers and losers
Power Grid Corporation (7.34 per cent), M&M (7 per cent), UltraTech Cement (over 5 per cent), Hero MotoCorp (over 4 per cent) and Hindalco (nearly 4 per cent) gains.
Top losers from the pack included stocks like Adani Enterprises (down 21%), Adani Ports (10 per cent), SBI Life Insurance (down over 5 per cent), BPCL (down over 4 per cent) and Bajaj Finserv (down over 2 per cent).
Rupak De, Senior Technical Analyst, LKP Securities. Request you to please incorporate the views in your story.
Technical set-up
Rupak De, Senior Technical Analyst, LKP Securities said, "Finally, the Nifty witnessed a strong recovery as the index moved back above the 200DMA, indicating an improving trend. Additionally, the Nifty has broken out of a few days of congestion on the daily timeframe."
The RSI has entered a bullish crossover near the oversold zone, suggesting positive momentum. The sentiment appears favorable for a meaningful rally in the short term, as long as the index stays above 23,600. Immediate resistance is seen at 23,960–24,000. A decisive move above 24,000 could trigger a rally toward 24,500. On the downside, supports are placed at 23,750 and 23,550, added De.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.