BSE Sensex and Nifty 50 rallied over 3.5 per cent this week, helped by positive global cues. BSE Sensex surged 277 points or 0.48 per cent to 58,130, while the Nifty 50 index surged to end at 17,320. Index heavyweights such as Reliance Industries Ltd (RIL), Infosys, Titan Company, Kotak Mahindra Bank and Tata Steel contributed the most to the indices’ gain. BSE m-cap of listed companies surged Rs 2 lakh crore to Rs 254 lakh crore. Broader markets performed in ine with equity benchmarks. BSE MidCap index gained 0.35 per cent or 85 points to end at 24382. BSE SmallCap index gained 0.41 per cent or 110 points to settle at 27, 305. India VIX gained 2.12 per cent to settle at 14.54 levels.
Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities
Large caps are playing a catch-up rally in the last one month, which is driving the benchmark to higher levels. We believe that the style rotation holds the key, moving forwards. We are in a very interesting phase of the market where benchmark indices are touching to all time high levels in which the market positioning has slowly shifted towards high quality large cap names. The market breadth has narrowed in the last one month and the high quality large cap stocks outperformed the broader market. Quality theme is clearly back in focus as we had highlighted this in the last month also where the market focus was slowly shifting towards the sustainability of the returns. We continue to see the broader market doing well, as the visibility on broad based earnings is still intact. Quality is an emerging theme which is now visible in the performance of FMCG index. Allocations are now increasingly shifting towards quality stocks where the earnings visibility and the balance sheet strength are very high.
Vinod Nair, Head of Research at Geojit Financial Services
Despite mixed global cues, domestic equities continued to raise its bar, recording fresh highs as India continued reporting strong economic numbers. European stocks traded mixed ahead of US jobs data while concerns over economic slowdown in China fanned investor worries. The Indian Service PMI data rose to 56.7 in August from 45.4 in July on account of reopening of several establishments and improving demand that boosted sales.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty made a new all time high of 17340 and gave a closing around the same level. Today is the second consecutive day where Nifty has closed around its high, this indicates strength in Nifty. Nifty closed at 17323 up by 90 points. Nifty is now headed for 17375 and 17400 in the coming few trading sessions.17200 and 17280 will act as strong support levels for Nifty. Traders can consider buying on every correction with strict stop loss as long as Nifty is trading above 17150 levels.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research
The market witnessed some volatile movements and an attempt to hold the level around the Nifty 50 Index level of 17300. It is suggested that the market sustains above the level of 17200-17250, the market to gain momentum, leading to an upside projection till 17400-17450 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Mohit Nigam, Head – PMS, Hem Securities
On the technical front, the market is witnessing a continuous positive trend and it has sustained well above 17200-17250 levels and we believe this up move will extend till 17,400-17,450 level in the short term. On the downside 17,100 is the immediate support in Nifty 50 followed by 16,900.
Sachin Gupta, AVP – Research, Choice Broking
Technically, the nifty index again breached the immediate resistance of 17250 and settled above it. Overall, the index is in momentum with bullish strength. Moreover, the index has given a Rising Trendline breakout on a weekly chart, which indicates further robustness in the counter. All the key indicators like RSI, MACD & Stochastic are supporting the positive trend in the index. Hence, market sentiments remain bullish along with the volatility. At present, the psychological level of 17500 could be a resistance while on the downside, 17100 may act as support for the index.