Comment

The week witnessed a bullish undertone as the rally extended for the fifth week in a row.

The combined exchange weekly advance decline ratio was positive as the figures stood at 12,206:9,768.

The capitalisation of the same on a commensurate basis was also positive as the figures stood at Rs53,136 crore: Rs38,043 crore.

The NSE gained Rs140,292 crore in market capitalisation on a w-o-w basis. In terms of sectoral performance, the rally was led by the CNX IT, followed closely by mid-cap and banking sectors.

Of the entire turnover initiated during the week, 85% was transacted on upthrust sessions, underscoring the optimism in sentiment.

The overseas investors were net buyers to the extent of Rs4,793 crore and that saw the rupee close at 48.68 vis-a-vis the US dollar (previous week 49.30). The US headline indices saw new economy Nasdaq outperform the old economy DJIA by a wide margin. The UK FTSE 100 witnessed a convincing rally, too.

In the Asian region, the rally was led by Hong Kong, Shanghai, Singapore markets whereas Japanese markets lost mildly. The overseas cues are largely optimistic and domestic markets will need an absence of negative news triggers to sustain the upthrust.

Technically, the domestic markets have broken out of the bearish channel and closed above the upper resistance line. The weekly range advocated for the Nifty between 5,350-4,900 levels has held as the benchmark trended within these levels. The coming week is likely to witness a range of 5,500 on the upside as long as the Nifty stays above the bullish pivot at the 5,250 mark. In case of declines, the Nifty is likely to test a level of 4,925 as long as the bears keep the Nifty below the 5,175 level.

Maintain a long bias as long as the Nifty spot stays above the 5,250 level.

lachman.ramchand@gmail.com