After multiple sessions of grave uncertainty and massive sell-offs across the board, the Indian markets set a different tone, a tone of vibrance this week.
Market Recap
The Indian indices closed the week with major gains. In addition, the last day of this week's trade also ended on a fruitful note, despite looming concerns of volatility in the global trade spectrum.
On Friday, March 21, the Sensex closed the day at 76,905.51, up by a major 557.45 points or 0.73 per cent. At the NSE, the Nifty index closed for the day at 23,350.40, up by 159.75 points or 0.69 per cent.
Also, the Nifty Bank closed for the day with major gains amounting to 530.70 points or 1.06 per cent, closing at 50,593.55.
Major Gainers and Losers
Gainers: On the BSE tranche, the major gainers included NTPC, Bajaj Finance, Kotak Bank and Axis Bank, who all made gains of 2 per cent. Nestle and L&T also made it to the greens.
Losers: Amongst the laggards, Infosys, Tata Steel and Mahindra and Mahindra closed for the day in red with cuts of over 1 per cent.
Markets On Friday Morning
The markets opened on Friday with caution. The BSE Sensex started the day at 76,155.00 points. The Nifty 50 index started the day at 23,168.25 lower than the previous day's closing.
In addition, the Nifty Bank index also started the day trading low at 49,927.10.
The KOSPI Index closed in green with gains of 6.03 points or 0.23 per cent, closing for the day at 2,643.13. | File
Asian Markets
The Asian indices were a mixed bag on the last day of the week's trade. On Friday, some major indices in east Asia closed with deep cuts at the bourse.
In Japan, the Nikkei dipped 0.20 per cent or 74.82 points, tumbling below the 38k mark, closing at 37,677.06.
Another Tokyo-based index, TOPIX, closed in green with minor gains. TOPIX ended proceedings for the day at 2,804.16, declining by 0.29 per cent or 8.20 points.
The story takes a severe turn, with some acute numbers as we move to China. The Hang Seng also closed with significant losses in its numbers, closing with a decline of 2.19 per cent or 530.23 points, at 23,689.72.
Shanghai-based SSE Composite also ended the day's trade in the red. The index lost 1.29 per cent or 44.12 points of its value and closed at 3,364.83. Finally, in South Korea, the KOSPI Index closed in green with gains of 6.03 points or 0.23 per cent, closing for the day at 2,643.13.
Buying On Dips Ideal?
Amol Athawale, VP – Technical Research at Kotak Securities said, "In the last week, the benchmark indices witnessed a stellar rally, with the Nifty gained 4.25 per cent, while the Sensex was up by 3070 points. Among sectors, all the major sectoral indices traded in positive territory, with the Capital Market and Defense indices gaining the most."
Athawale further added, " We are of the view that the short-term market texture is bullish; however, due to temporary overbought conditions, we could see some profit booking at higher levels. For traders, buying on dips and selling on rallies would be the ideal strategy."
"In the near future, 23,100/75800 and the 50-day SMA or 23,000/75400 would act as key support zones, while 23,500-23,700/77400-78000 could be the key resistance areas for the bulls.'
"The Bank Nifty, it rallied over 5 percent last week and is currently trading comfortably above the 50,000 mark. For the trend, traders should consider 50,000 and 49,700 as key support zones, while the 200-day SMA at 51,000 and 51,300 could serve as crucial resistance areas for positional traders." Athawale further added.
