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The Indian stock market experienced a significant upswing, with the Nifty 50 achieving its most substantial weekly gain in over four years. This rally was primarily fueled by a resurgence of interest from foreign investors and increasing confidence that the blue-chip indices had reached their lowest point after a previous decline. The BSE Sensex rose by 557.45 points, representing a 0.73% increase, to close at 76,905.51. Simultaneously, the broader Nifty 50 index climbed by 159.75 points, or 0.69%, to reach a closing value of 23,350.40. Vinod Nair, Head of Research at Geojit Financial Services, observed that the domestic market concluded the week with consistent gains. He attributed this positive performance to the anticipated reduction in risk-free rates, coupled with a correction in the dollar index, which facilitated the flow of funds back into emerging markets (EMs). Nair further noted that Foreign Institutional Investors (FIIs), whose selling activity had been diminishing, were now becoming net buyers. This shift was driven by dovish signals emanating from the U.S. Federal Reserve, suggesting the potential for two interest rate cuts during the year. This development has sparked renewed optimism within the domestic market, despite ongoing global uncertainty stemming from escalating trade tensions. Improving domestic macroeconomic indicators, valuation corrections, and anticipated earnings growth are encouraging investors to seek out bargains, further contributing to the market's upward trajectory. The S&P 500 and Dow Jones Industrial Average in the United States also managed to record modest gains on Friday. This rebound occurred after earlier losses, following comments from U.S. President Donald Trump that alleviated concerns regarding upcoming tariffs scheduled to take effect in early April. His remarks fostered optimism that the impact of these tariffs might be less severe than initially anticipated. The Dow rose by 32.03 points, or 0.08%, to close at 41,985.35, while the S&P 500 added 4.67 points, also up 0.08%, finishing at 5,667.56. The Nasdaq Composite outperformed both, climbing by 92.43 points, or 0.52%, to end the session at 17,784.05. However, European shares experienced a decline, extending their losing streak on Friday, mirroring the performance of major global markets. Uncertainty surrounding trade tensions and geopolitical conflicts weighed heavily on investor sentiment. Travel and leisure stocks faced additional pressure due to a fire that forced the closure of Britain's Heathrow Airport. The pan-European STOXX 600 dropped by 0.6%, marking its third consecutive session of losses. The technical analysis provided by Rupak De, Senior Technical Analyst at LKP Securities, indicated that the Nifty continues to move upward, following a breakout from a falling trendline. This movement is supported by upbeat sentiment. De noted that during the last trading session, the index encountered resistance at the 21-week exponential moving average, which is positioned at 23,382. He suggested that a decisive move above 23,400 could propel the index higher by an additional 200 points, as the next resistance level lies at 23,600. A clear breakout above 23,600 might trigger another leg of the rally. Conversely, a failure to move above 23,400 could lead to near-term consolidation.
In terms of trading activity, several stocks stood out on the BSE based on their value. TBO Tek led the pack with a trading value of Rs 88,907.45 lakh, followed by Manappuram Finance at Rs 14,486.49 lakh, Vodafone Idea at Rs 7,726.56 lakh, Adani Green Energy at Rs 7,403.54 lakh, and Jupiter Wagons at Rs 7,288.48 lakh. Higher activity in a counter in value terms can serve as an indicator of stocks with the highest trading turnovers of the day. On the NSE, Vodafone Idea dominated in terms of volume, with 71.89 crore shares traded. Manappuram Finance followed with 14.63 crore shares, Zomato with 11.33 crore shares, Suzlon Energy with 10.47 crore shares, YES Bank with 10.10 crore shares, Easy Trip Planners with 7.16 crore shares, and ICICI Bank with 6.04 crore shares. Furthermore, certain stocks garnered strong buying interest from market participants. These included shares of Valor Estate, MRPL, Alembic Pharmaceuticals, Ramkrishna Forgings, Tejas Networks, Jupiter Wagons, and Redington. A significant number of stocks, over 75 in total, reached their 52-week highs during the trading session. Notable among these were Kotak Mahindra Bank and Bajaj Finance. Conversely, 96 stocks slipped to their 52-week lows. Stocks that experienced considerable selling pressure included TBO Tek, Shipping Corp of India, Crisil, Amber Enterprises, Jindal Stainless, Suzlon Energy, and Campus Activewear. Overall, the market sentiment was bullish. Out of the 4,162 stocks that traded on the BSE on Friday, 1,286 stocks witnessed declines, while 2,772 saw advances, and 104 stocks remained unchanged. This positive sentiment reflects the underlying factors driving the market's upward trend, including renewed foreign investor interest, dovish signals from the U.S. Federal Reserve, and improving domestic macroeconomic indicators. The technical analysis suggests that the Nifty has the potential for further gains if it can overcome the resistance level at 23,400, paving the way for a potential rally towards 23,600.
The global market landscape presents a mixed bag of signals. While the Indian market demonstrates resilience and upward momentum, fueled by both domestic and international factors, European markets face headwinds stemming from trade tensions and geopolitical uncertainties. The U.S. market, while showing signs of recovery after initial concerns, remains sensitive to economic news and policy announcements. The interplay of these global factors underscores the interconnectedness of financial markets and the importance of monitoring events across different regions. For investors, the current market environment necessitates a balanced approach, considering both the opportunities and risks associated with different asset classes and geographic locations. Diversification and a long-term perspective are crucial for navigating the inherent volatility of the market and achieving sustainable returns. The identification of stocks with strong buying interest and those experiencing selling pressure can provide valuable insights for portfolio management. However, it's essential to conduct thorough research and due diligence before making any investment decisions. The technical levels identified by analysts, such as resistance and support levels, can serve as useful guides for timing entry and exit points. However, it's important to recognize that technical analysis is not foolproof and should be used in conjunction with other forms of analysis. The market's response to future economic data releases, policy announcements, and geopolitical events will ultimately determine its direction. Therefore, staying informed and adapting to changing market conditions are essential for success in the investment arena. The focus on active stocks in terms of value and volume can provide an understanding of where the most trading activity and investor interest are concentrated. This information, combined with the broader market trends and sentiment, can help investors make more informed decisions about their portfolio allocation and trading strategies. The mention of stocks hitting 52-week highs and lows can indicate potential opportunities and risks, but it's essential to consider the underlying fundamentals of the companies involved and the sustainability of their performance.
Source: Ahead of Market: 10 things that will decide D-Street action on Monday