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Amid positive global cues, the Indian equity benchmarks extended their gaining streak for the fourth straight week and posted marginal gains during the passing week.
However, the gains remained capped as traders remained on the sidelines ahead of the outcomes of the Assembly election to be announced in the first week of December.
Market Wrap
Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic indices traded within a range throughout the week with a positive bias. The Fed reserve adopted a cautious stance and the muted trend in European and German markets was also echoed in domestic markets”. The Declining inflation and recent cooling job data in the US, along with easing US bond yields, attracted foreign funds to the emerging market.
He added that the broader Indian market experienced some profit booking as investor attention shifted to the primary market, marked by a set of IPOs scheduled for the week. “Sectors such as consumer durables and realty took the lead, driven by a strong rebound in festive demand. However, the IT sector showed subdued performance in response to weak global data. Despite the RBI’s scrutiny of unsecured lending by NBFCs, the banking index demonstrated resilience this week”, Nair said.
The BSE Sensex surged 175 points, or 0.27 per cent, at 65,970 during the week ended on November 24, while the Nifty jumped 63 points, or 0.32 per cent, to 19,795. Sector-wise, the BSE Realty index surged the most (1.5 per cent) during the week gone by. While BSE Power and BSE Healthcare indices have registered a gain of 1.4 per cent, and 0.8 per cent, respectively. On the other hand, the BSE Information Technology index has registered a weekly decline of 0.34 per cent.
As many as 20 stocks in the Nifty 50 index delivered a positive return for investors in the week. With a weekly gain of 6.4 per cent, Hero MotoCorp emerged as the top gainer in the index. It was followed by Bajaj Auto (5.3 per cent), Bharat Petroleum Corporation (5.1 per cent), Divi’s Laboratories (4.5 per cent), and Bharti Airtel (2.7 per cent). HDFC Life Insurance Company, and Hindalco Industries also advanced by over two per cent. On the other hand, Cipla, Oil & Natural Gas Corporation, and Coal India declined 4.0 per cent, 3.8 per cent, and 3.6 per cent, respectively.
Technical Outlook
Rupak De, Senior Technical analyst at LKP Securities said that The Nifty has encountered difficulty surpassing the resistance range of 19850-19900. On the downside, 19700 has held as a near-term support level. As long as there’s no breakout, the index is expected to continue moving sideways. “A decline below 19700 could potentially trigger a market correction. Conversely, a clear move above 19900 might prompt a significant rally, potentially driving the index towards a new all-time high”, De said.
