Indian equity bourses closed at record high levels amidst strong buying in metal, IT and banking stocks during the week gone-by. Beaten down metal stocks remained under investors radar and gained traction during the week after witnessing steep fall in previous week. Sharp buying was also seen in heavyweight private banking stocks and Reliance which lifted Sensex by nearly 1.4 percent during the week under review.
Concerns over delta virus was offset by the positive news over record inoculation of COVID-19 vaccines. Sentiments remained upbeat during the week as U.S FDA issued its full approval for the COVID-19 vaccine made by Pfizer and BioNTech. However, gains remained capped as investors are cautiously waiting for outcome of Jackson Hole. Fed’s speech and intention on taper plan will remain under investors’ radar. Apart from Fed’s speech, investors will also monitor global economic data and COVID-19 situation.
On a weekly chart, the benchmark index has been trading in Higher High and Higher Bottom Formation and formed a bullish candle on the weekly time frame, which suggest strength for upside in the upcoming trading session. Bank Nifty ended at 35627.80 levels, up by a moderate gain of 10.20 points from the previous close. On the sectoral front, the auto sector shredded 0.41 percent, while the IT sector took the most hit of 1.69 percent on a weekly basis.
Technically, the Nifty Index has given a breakout of the previous resistance level, which suggests strength in the counter. Moreover, the benchmark index has been trading above 9*21 WMA with a positive crossover, which suggest strength for the upside. Momentum Indicator MACD is also showing positive crossover on daily time frame which further adds strength in the index. At present, the Nifty index has immediate resistance at 16,730 levels while downside support is shifted up to 16350 levels.
Gainers
Hindalco stock surged nearly 8.6 percent in one week, supported by the rally in metal index and chairman’s message on demand outlook further lifted sentiments.
Investors kept IT stocks on buying radar and TCS was among the top gainers in Nifty 50 index.
Bajaj Finserv surged over 8 percent in one week as SEBI grants approval for mutual fund business
ONGC recovered from last week’s steep fall and surged nearly 5.8 percent during one week.
Adani Ports stock rises after Andhra Pradesh govt grants approval for 10.4 percent stake acquisition in Gangavaram Port
Losers
Nifty losers for the week ended August 23-27
Maruti 3.3 percent
Airtel 3 percent
Titan 2.89 percent
Asian Paints 2.45 percent
Power grid 2.38 percent
Bharti Airtel board to consider capital raising options on 29th August, stock falls over 4 percent.
(Ankit Pareek is Research Analyst, Choice Broking)
