Indian stock market: The Indian stock market recently experienced its strongest weekly rally in four years, a reversal in the outflow of foreign investors and a reversal in relation to mutual progress on possible progress in American-Japanese trade talks.
Domestic Equity Benchmark, Sensex and Nifty 50, climbed 2% in the previous season, marking the fourth consecutive day gains during the holiday-shorted week. The 30-stock BSE Sensex increased by 1,508.91 points or 1.96%, over 78,000 points and closed at 78,553.20.
“The markets watched a strong recovery and increased by more than 4.5% in the holiday-shorted week, operated by both domestic and global fronts favorable signs. The benchmark indices opened with a sharp difference and carried forward the profit in later sessions.
Major market driver for next week
The market rally was mainly operated by optimism at the adjournment of tariffs and newly declared exemptions on some products, enhancing hopes for potential negotiations that can reduce stress on global trade.
As the week progressed, the market participants positively responded to a group of favorable developments including updates on a normal monsoon, to reduce retail inflation – that raised hopes to cut potential policy rates – and the absence of any major negative surprise from the global markets.
All major areas contributed to the market up speed, which benefited in realty, banking and financial shares. Other areas also recorded concrete demonstrations. Extensive indices raised pace with benchmarks, climbing more than 4%, underlining the widespread strength of the rally.
Major events to see next week
In the coming week, the attention of the investor will focus on the announcements of the earnings of several marki companies like HDFC Bank and ICICI Bank. Other notable companies set to release their quarterly results include HCL Technologies, Axis Bank, Hindustan Unilever and Maruti.
On the derivative side, the end of the April series contracts can contribute to an increase in market volatility. Globally, the development around the tariff and their possible impacts on international markets will also be seen closely.
Technical approach to Nifty next week
According to Mishra Broking’s Mishra, the Nifty has been trading technically within a wide range of 21,700–23,800 in the last two months and has now reached the upper end of this band. In addition, it has retrieved the key to achieve 100 and 200-day EMAS. Moving forward, the prevailing positive speed is expected to continue with a possible reverse towards 24,250–24,600 zones. In the case of dip, 23,000–23,300 are likely to act as a support.
He further stated that a sharp decline in the instability index (India Vix) also indicates a decrease in market fear after chopness recently. In major areas, continuous strength has been important in the banking index. It is now on the verge of killing a new record high. Heavyweight earnings like HDFC Bank and ICICI Bank are expected to provide significant indications for the next market move. On the high side, the index may target an area of 55,000–57,000, given the consolidation phase in the last nine months. In case of any dip, 51,900–53,400 are expected to offer strong support in the area.
What should be your market trading strategy?
Mishra has advised investors to continue with the strategy of ‘Dips on Dips’.
“Pointing to the continuity of existing recovery, with signals,” Dips on Dips “is advised until the Nifty violates 23,000 points. Sector-wise, rate-sensitive segments such as banking, financial, auto, and realty are preferred and recommended to be selective in other sectors.”
Rejuvenation: This story is only for educational purposes. The above views and recommendations belong to individual analysts or broking companies, not mint. We recommend investors to investigate with certified experts before taking any investment decisions.
