Bank Nifty also saw strong rebound led by PSU banks after worries over exposure to Adani group appeared blown out of proportion; 49 out of 50 stocks in benchmark Nifty 50 ended the session higher, indicating the broad-based buying interest in today’s session.
FinTech BizNews Service
Mumbai, 22 November, 2024: Benchmark indices saw sharp rebound on Friday led by broad based buying seen across the sectors to close the week higher after two consecutive weekly losses.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, points out: "49 out of 50 stocks in benchmark Nifty 50 ended the session higher, indicating the broad-based buying interest in today’s session. After weeks of sell off, markets had seen a sharp rebound from oversold conditions on Friday with benchmark Nifty 50 almost closing in on 24000 level while Sensex rebounded more than 2000 points to close above 79000 level. Positive global cues from overnight gains in US indices to the abating worries on sudden spiral in Russia Ukraine conflict added to the strong rebound rally. Expectations that large cash levels at domestic mutual fund houses, last estimated around ~1.5 lakh crores, might have been put to use after weeks of selling markets witnessed.
Bank Nifty also saw strong rebound led by PSU banks after worries over exposure to Adani group appeared blown out of proportion. Index has traded above 51000 level indicating a near term positive shift in momentum. On the upside, next resistance is at 52100 while on the downside, immediate support is around 50400 level.
For benchmark Nifty 50, market closed above 23900 level with next resistance seen at 24200. On the downside, market may take the support around recent lows 23400. All major sectors ended with gains with IT and Realty leading the pack while Pharma, Financials and Metals lagged the benchmark although posting solid gains."
Garg further indicates: "Looking ahead, markets will focus key macro data releases ranging from Q2 GDP to banking sector data on loan/deposit growth and Infrastructure output. In the US, focus will be on core PCE inflation data."
Sharing weekly market wrap, Amol Athawale, VP-Technical Research, Kotak Securities, explains: "In the last week, the benchmark indices bounce back sharply, the Nifty ends 1.45 percent higher while the Sensex was up by 1535 points. Among Sectors, Reality index outperformed rallied over 6 percent whereas Oil Gas, Energy and Media indices shed over 1 percent. Technically, after a long correction the market took the support near 23265/76800 and reversed. Post reversal it not only cleared 200 day SMA (Simple Moving Average) but also succeeds to close above the same which is largely positive.
We are of the view that, as long as the market is trading above 200 day SMA or 23600/77500 the pullback formation is likely to continue. On the higher side, it could move up to 24000-24200/79400-79900 On the flip side, below 23600/77500 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions. For the Bank Nifty now, 50500 and 50300 would be key support zones while 20 day SMA or 51250 and 50 day SMA or 51850 could be the crucial resistance areas for the short-term traders."
