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| Edited By: Lachman Ramchand |Source: DNA |Updated: Mar 30, 2018, 04:16 AM IST
The last week witnessed a strong upthrust as the bulls regained their initiative, aided by short covering by surprised bears. The combined exchange weekly advance-decline ratio was positive as the figures stood at 9,816 : 6,958. The capitalisation of the same on a commensurate basis was also positive as the figures stood at Rs.29,271 crore : Rs.19,444 crore. The National Stock Exchange gained Rs.268,436 crore in market capitalisation on a week-on-week basis.
In terms of sectoral performance, the rally was led by the technology segment, followed by the midcap and banking indices. Of the entire turnover transacted during the week, 40% was initiated on upthrust days, underscoring the late-buying momentum in the markets.
The overseas investors were net buyers to the extent of Rs.601.3 crore and that saw the rupee close at the 48.75 levels vis-a-vis the US dollar (previous week 50.02 levels). The US headline indices saw the Dow Jones Industrial Average log positive weekly closings for five weeks in a row. The Nasdaq Composite managed to outperform its old economy peer marginally.
The UK FTSE100 witnessed a strong performance as the euro zone worries receded on a bailout deal. In the Asian region, the surge was led by the Hong Kong market, followed by Singapore, China and Japan, in that order. The overseas cues have been positive and the domestic sentiments have ample tailwinds to propel markets higher in the near term.
Technically, the domestic markets have almost tested the upper band of the bearish channel on the weekly charts.
The 5475 level needs watching as a near-term resistance, above which the bulls may get bolder. The weekly range advocated for the Nifty between the 5275 and 4900 levels has been overcome as the benchmark tested the 5400 levels.
This week is likely to witness a range of 5600 on the upside as long as the Nifty stays above the bullish pivot at the 5275 mark. In case of declines, the Nifty is likely to test a level of 5150 as long as the bears keep the Nifty below the 5200 levels.
