@rex_cano
Mumbai:
The markets are at a fresh 5-month high on the back of smart gains across-the-board. Better-than-expected results from select corporates, hopes of a cure for the Covid-19 pandemic and liquidity measures across the globe have been driving the markets higher.
In the week under review, the BSE benchmark index, the Sensex, began with a bang and moved from strength-to-strength as the week progressed. Buying support was evident on every dip as the markets staged quick recoveries. The Sensex held on the 160-odd point positive gap throughout the week and touched a high of 38,254. The Sensex eventually ended the week with a gain of 3 per cent (1,109 points) at 38,129.
Among the Sensex 30 stocks, index heavyweight was the major gainer, the stock zoomed over 12 per cent to a fresh life-time high at Rs. 2,146. PowerGrid Corporation, HCL Technologies and ICICI Bank were the other major gainers, up 8-11 per cent each. ITC, Axis Bank, Infosys, HDFC and SBI also finished with smart gains. On the flip side, Hindustan Unilever, Sun Pharma, Larsen & Toubro, TCS and Bajaj Finance were the prominent losers.
The Sensex continues to remain buoyant as per the monthly Fibonacci charts. The BSE index has crossed one hurdle after another with ample ease. As per the yearly Fibonacci chart, the next key hurdle for the Sensex is at 38,760-odd level, above which the index can potentially rally towards 39,800.
The Sensex has also given a buy signal on the quarterly Fibonacci chart by crossing its R1 level at 38,050. As per the quarterly Fibonacci chart, the bias for this quarter (July-September) is likely to remain bullish as long as the BSE index sustains above 36,720-level. On the upside, the BSE index may seek to test the quarterly R2 and R3 placed around at 39,000 and 40,000-mark, respectively.
As per the weekly Fibonacci charts, next week, in case of an up move, the BSE Sensex may face resistance around 38,535-38,660-38,790, and in case of a down move the BSE index is likely to seek support around 37,720-37,595-37,470.
With this week’s 2.7 per cent gain at 11,194, the NSE Nifty has soared over 12 per cent, having gained as much as 1,221 points in just six successive weeks. In doing so, the NSE index has gained a whopping 49 per cent (3,683 points) from the lows of March 2020, in a matter of mere four months.
After having cleared hurdles on the daily charts, the NSE index has now also crossed key resistance levels on the weekly charts. This week, the Nifty managed to break above the 100-WMA (Weekly Moving Average) placed at 11,025. The Nifty is now seen moving closer to the higher-end of the Bollinger Band, indicating a target of 11,330-odd levels. On the downside, the 100-WMA can act as an immediate support.
Among the key momentum oscillators on the weekly charts, the DI (Directional Index) has turned positive and the MACD (Moving Average Convergence Divergence) too remains supportive. The RSI (Relative Strength Index) is in neutral mode, while the Slow Stochastic is slightly inconclusive.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
