Sensex, Nifty end in green, financial stocks drag market; here’s what analysts make of today’s trade

BSE Sensex and Nifty 50 ended flat on Friday after witnessing a volatile trade. Sensex ended flat with just a gain of 28 points at 48,832.03, while the broader Nifty 50 index gained 36.4 points to settle at 14,618. During the day, Sensex surged to a day’s high of 49,089.55, while Nifty 50 index inched near to 14,700 level. Market breadth remained in favor of bulls as 1,664 stocks advanced while 1,238 scrips declined. A total of 158 stocks remained unchanged. Broader markets outperformed equity benchmarks. S&P BSE Midcap index gained 1.17 per cent or 233.78 points to end at 20,157.36. While S&P BSE SmallCap jumped 1.05 per cent or 219 points to settle at 21,018.55.

Sumeet Bagadia, Executive Director, Choice Broking

After a positive opening, the Nifty index traded into the narrow range for the day, but corrected during the last hours to close at 14617.85 levels. Bank Nifty has closed at 31977.45 levels with a loss of 135 points. On the sectoral front, almost all of the indices closed on a positive note with the average gains of 1.5% whereas Nifty Pharma was the top gainer for the day. Technically, the benchmark index has failed to sustain above 50 days Exponential Moving Averages, which acts as immediate resistance zone. Moreover, an indicator MACD has also indicated negative crossover, which suggests bearishness for the near term. At present, the Nifty index has an immediate support at 14250 levels, while on the higher side it may find resistance around 14700 levels.

S Ranganathan, Head of Research at LKP Securities

Despite US markets hitting new highs, Indices here remained in a range today as FII figures for the first half of the month were not very encouraging but we did see plenty of action in the broader market with Pharma & Metals witnessing investor appetite. Despite a normal monsoon forecast today by the met dept, investors remained circumspect on account of rising coronavirus cases.

Rohit Singre, Senior Technical Analyst at LKP Securities

Index closed a week at 14600 zone with loss of 1.50% on weekly basis and formed hammer sort of candle pattern on weekly chart. Again index has taken strong resistance from 14700 zone which will be an immediate hurdle for coming week as well followed by 14800 zone, supports are still placed at 14500-14400 zone if managed to hold above said levels we may see positive move in coming sessions.

Vinod Nair, Head of Research at Geojit Financial Services

Strong positive cues from the global market lent optimism to the Indian market leading to robust recovery though volatility & underperformance were noticed at the end of the day due to concerns over lockdown. US treasury yield saw a sharp drop yesterday on reports of better than expected retail sales and a fall in unemployment. It triggered a rally in the US which was also reflected in European and Asian markets. As soon as India is able to show a drop in infection rate, due to lockdown & vaccination, market performance will improve