Mumbai: The markets displayed immense strength on Friday on the back of short covering in index futures on account of the weekly derivatives expiry. The BSE benchmark index, the Sensex, opened with a positive gap of nearly 200 points, and continued to march higher as the day progressed. The Sensex scaled a high of 36,015, before settling with a gain of 429 points at 35,844.
Among the Sensex 30 stocks, Mahindra & Mahindra zoomed over 6 per cent. Titan, Tata Steel, HCL Technologies, Infosys, TCS, HDFC, Tech Mahindra, Maruti, Larsen & Toubro and ONGC rallied 2-3 per cent each. On the flip side, Axis Bank slipped over 2 per cent. Hindustan Unilever was the other notable loser.
The BSE Sensex crossed the weekly Fibonacci R3 in intra-day deals on Thursday, placed at 35,915. As per the weekly chart, the BSE index will need to sustain above 35,915 for further gains, and in case of a down move the Sensex is likely to find considerable support around the 35,630-35,435 range.
As per the daily Fibonacci charts, on Friday, in case of an up move the BSE Sensex may face resistance around 36,000-36,055-36,100, and in case of a down move, the BSE index is likely to seek support around 35,680-35,630-35,585.
The NSE Nifty tested its higher end of the Bollinger Band on the daily charts in trades on Thursday. The higher-end of the Bollinger Band indicates some resistance around 10,600-level, above which the NSE index can rally towards the 200-DMA (Daily Moving Average) around 10,900-odd level. The bias for trade on Friday is likely to remain bullish as and when the NSE index starts sustaining above 10,600, or else some profit-taking can be expected.
In case, the NSE Nifty is unable to break and sustain above 10,600-level, the index may slip and test support around 10,200-odd levels, closer to the 20-DMA, in the next few trading sessions.
Among the key momentum oscillators on the daily charts, the Slow Stochastic and the DI (Directional Index) have given a fresh positive divergence, which augurs well for the bulls. The MACD (Moving Average Convergence Divergence) continues to remain inconclusive, while the 14-day RSI (Relative Strength Index) is nearing overbought levels.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
