New Delhi, May 13 | Indian equity benchmark indices climbed in opening deals on Friday led by gains across all sectoral indices after a steep fall in the previous session and a consistent decline in the past five straight sessions.
Sensex was up 481 points or 0.9 per cent to 53,411 points in early trade, whereas Nifty up 147 points or 0.9 per cent at 15,955 points.
However, equity investors remain worried amid the persistently high inflation and tight monetary policy stance by several central banks.
India’s retail inflation accelerated to 7.79 per cent in April due to high fuel and food costs.
The inflation print remained above the tolerance limit of the central bank RBI for a fourth month in a row, data released on Thursday showed.
“The positive side is that all this bad news is already known and factored-in by the market. Since the market is oversold, a bounce back can be expected but the texture of the market remains weak for long-term investors, high quality financials and IT provide investment opportunities,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.
48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.
Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.
However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.
Source: Choice India