Nifty, Sensex Recover Weekly Losses But Nifty IT Slips 6%: Market Wrap
The benchmark indices reversed losses from the past week, with the Nifty gaining 0.33% and the Sensex rising 0.26% this week.
The benchmark equity indices ended higher on Friday, extending gains for a third straight day as ITC Ltd., Larsen & Toubro Ltd. and ICICI Bank Ltd. led the advance.
The NSE Nifty 50 closed 84.80 points or 0.39%, higher at 22,096.75, while the S&P BSE Sensex ended 190.75 points or 0.26%, up at 72,831.94.
During the day, the Nifty rose as much as 0.77% higher to 22,180.70 and the Sensex jumped 0.65% to 73,115.62.
"During the week, the market slipped below its 50-day simple moving average, but in the last two days, on the backdrop of strong global cues, it bounced back sharply," Shrikant Chouhan, head equity research at Kotak Securities Ltd., said.
Technically, the index has formed a promising reversal formation and currently, it is comfortably trading above the 50-day SMA, which is largely positive, Chouhan said.
For the traders now, as long as it is trading above the 50-day SMA or 21,950/72,350, the positive momentum is likely to continue. Above the same, the market could rally till 22,220–22,350/73,100–73,500, according to Chouhan.
On the flip side, below 21,950/72,350, the sentiment could change. Below 21,950/72,350, the market could slip till 21,850–21,800/72,000–71,800, he said.
The benchmark indices reversed losses from the past week, with the Nifty 50 gaining 0.33% and the BSE Sensex rising 0.26% in the week.
However, the Nifty IT shed 6% due to sharp losses in company stocks after Accenture Plc lowered its growth forecast.
ITC, Larsen & Toubro, ICICI Bank, Maruti Suzuki India Ltd. and Sun Pharmaceutical Industries Ltd. led the gains in the benchmark Nifty 50.
Infosys Ltd., Tata Consultancy Services Ltd., HCL Technologies Ltd., HDFC Bank Ltd. and Wipro Ltd. weighed on the index the most.
Ten sectors on the NSE ended higher this week and two declined. The Nifty IT emerged as the worst performer with an over-6% loss.
The broader markets ended higher, with the BSE MidCap rising 0.38% and the SmallCap advancing 1.06%.
On the BSE, 18 out of the 20 sectors ended higher, with information technology falling the most by 2%.
The market breadth was skewed in favour of the buyers as 2,442 stocks rose, 1,363 declined and 101 remained unchanged on the BSE.
