Business
The overseas cues were cautious as the headline indices witnessed profit sales at higher levels after the bank stress test results were declared.
Updated : Mar 29, 2018, 05:02 AM IST
Last week was positive for the markets as the players were optimistic ahead of the poll results. This was reflected in the numbers as the weekly combined exchange advance-decline figures were 9114:9447. Viewed in the backdrop of bearish expectations on the eve of a major news trigger, these figures show an even strength between the bulls and bears.
The traded volumes were steady as big ticket buying was almost absent within the retail segment. The capitalisation of the breadth indicates a buying bias. The surge was led by the banking and technology stocks, whereas mid-cap shares underperformed the broader markets.
The overseas cues were cautious as the headline indices witnessed profit sales at higher levels after the bank stress test results were declared.
The UK FTSE index outperformed the US indices in relative terms as the fall in the UK was muted compared with the US markets. The dollar yielded ground to the euro and led the decline in equity markets. FII investments during the week totalled Rs 4,414.90 crore. This boosted the rupee, which closed at 49.41 versus the dollar.
The weakness in the overseas markets may dampen domestic sentiments in the near term, to a limited extent.
Technically speaking, the 3717 swing reversal high of the recent peak remains inviolate and needs to be overcome forcefully if the bulls are to push markets even higher.
This week is likely to witness a range of 3820 on advances and 3425 on declines. The bullish pivot for the week will be at the 3650, above which the Nifty spot must remain in order to remain bullish. The bearish pivot will be at the 3590, below which the bears may attempt to push values lower.
The commensurate weekly range for the BSE Sensex will be at the 12650 on advances and 11250 on declines.
The action is likely to be pronounced on the large-cap counters as institutional activity perks up on the election triggers. Power, cyclicals and interest rate sensitive stocks are likely to gain ground in case of an overall upthrust.
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