Markets bounce back!
On Friday, the Indian stock indices staged a recovery from their earlier declines following Iran’s denial of any retaliation by Israel. The Sensex surged by 600 points or 0.83%, concluding the day’s trading at 73,088.33, while the Nifty 50 ended 151 points or 0.69% higher at 22,147.00. Among the top performers were Bajaj Finance, M&M, Maruti Suzuki, HDFC Bank, and JSW Steel. The Indian Volatility Index (India VIX) closed with a 3.14% increase.
Meanwhile, Nifty Bank ended the session with a gain of 505 points, closing at 47,574.15. However, the Nifty Midcap 100 moved against the trend, experiencing a decline of nearly 300 points or 0.61%, settling at 48,696.95 showing a market bounce back!
“On the daily chart, we observe the formation of a piercing line pattern, typically signaling a bullish reversal after a correction. Moreover, the indicator has crossed above the 55EMA, a short-term moving average. A close above this moving average indicates a positive short-term trend. Looking forward, bullish sentiment could drive the Nifty’s recovery towards 22,300. Furthermore, a decisive breakthrough beyond 22,300 could initiate a sustained rally towards 22,600. On the downside, support on a closing basis is positioned at 22,000,” explained Rupak De, Senior Technical Analyst at LKP Securities.
“Despite global weaknesses, the Indian markets exhibited a robust recovery led by large-cap stocks, fueled by optimism surrounding limited escalation prospects following Israel’s actions against Iran. However, vulnerabilities persist amid elevated oil prices, posing inflationary risks. Gold prices were on the rise due to safe-haven demand. Foreign Institutional Investors (FIIs) continued to display risk aversion, a trend observed since the previous week. Global sentiment remains subdued due to a resilient US economy and ongoing inflation, tempering expectations of an imminent Fed rate cut. Weakness was noted in mid and small-cap segments as expectations for Q4 earnings remained subdued,” elaborated Vinod Nair, Head of Research at Geojit Financial Services.
