D-Street Further: Nifty 50 increased to 1.8% at 23,851.65, while BSE Sensx added 1.96% to finish 78,553.2 from Good Friday holiday.
The index rose 4.5% in the holiday-trunk week, while his leading Asian peers weakened due to uncertainty on the American tariff and worried about his impact on economic growth.
This week, the top lenders ralled up the possibilities of healthy net interest margin, after the top lenders cut the central bank rate, after the top lenders reduced their deposit rates.
ICICI Bank and HDFC Bank, the heaviest weighted stock on Nifty, increased by 7.2% and 5.5% respectively, to hit Lifetime High before its earnings release this week.
Technically, the Nifty has been trading 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.
A sharp decline in the instability index (India Vix) also indicates a decrease in market fear after recent bite. 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.
With indications pointing to the continuity of current recovery, “dips on dips” approach is recommended until the Nifty breaks a mark of 23,000. Sector-wise, rate-sensitive segments such as banking, financial, auto and realty are preferred and it is advisable to be selective in other fields.
Widespread market participation is also visible, rapidly strengthening the feeling although attention should be fundamentally on sound shares, especially with the income season.
