Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, anticipates Nifty's positive trend continuation after a recent 3% surge. He credits this optimism to a liquidity-driven rally, foreseeing its extension into the coming week.
Nifty closed near its day's peak, climbing by 274 points (+1.3%) to reach 21,456 levels on Friday. Sector-wise, there was a mixed performance, notably with buying observed in IT, PSU banks, metals, and oil & gas stocks.
The global Santa rally, triggered by the US Fed's accommodative stance and a falling dollar index, aligns with robust FIIs investments and strong macro indicators, contributing to the buoyancy in Indian markets, as per Khemka.
Rupak De, Senior Technical Analyst at LKP Securities, highlighted Nifty's sustained upward momentum and dominant bullish sentiment, noting a lack of reversal signals on technical charts during its seventh consecutive weekly gain. He indicated resistance at 21,500, eyeing further Nifty advancement, with current support at 21,300.
Key Points:
1. Recent days have shown a robust 3% surge in the Nifty, suggesting an optimistic trend set to continue into the upcoming week. Siddhartha Khemka from Motilal Oswal Financial Services anticipates this upward momentum driven by liquidity.
2. Nifty closed near its day's peak, climbing by 274 points (+1.3%) to hit 21,456 levels, showcasing a northbound trajectory in its movement.
3. Diverse sectors experienced varied activity; notable buying was observed in IT, PSU banks, metals, and oil & gas stocks, as highlighted by Khemka.
4. The global equity markets are experiencing a 'Santa rally' post the US Fed's dovish outlook and a decline in the dollar index. Strong FII investments, along with favorable macro conditions, are fortifying positivity in the Indian markets, according to Khemka.
5. The bullish trend in the Nifty continues unabated, achieving a new record high and marking its seventh consecutive weekly gain. Senior Technical Analyst Rupak De from LKP Securities indicates a prevailing sentiment favoring the bulls, with resistance noted at 21,500 and potential further advances upon breaching this level. Current support rests at 21,300.
(With Agency Inputs)
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