Benchmark index Nifty is seen up next week as weekly technical charts indicate an upside rally as it has been trading with higher high & higher low formation as well as formed open marubozu candlestick.
Moreover, on a four hourly chart, Nifty has formed a hammer kind of candlestick pattern which adds bullish momentum for upcoming sessions as also the benchmark index has been trading above 21&50-HMA which suggests strength in the counter.
At present, the benchmark index has support at 17,500 levels while resistance comes at 18,000 levels, crossing above the same can show 18,200-18,300 levels. On the other hand, Bank Nifty has support at 36,800 levels while resistance is at 38300 levels.
Last week, Indian equity bourses surged 2.6 percent tracking the positive uptrend in global equities as beaten down banking & financial stocks came under limelight with heavyweight stocks like ICICI Bank, HDFC Bank and Reliance being the top contributors to benchmark gains.
On the sectoral front, PSU Bank saw the highest gain of 5.6 percent followed by the finance, energy and telecom sector while Nifty IT and Pharma were the top laggards in a week. On the stocks front Grasim, Bajaj Finance, ONGC were in the top gaining list with almost 10 percent gains while Tech Mahindra, Dr Reddy's, Infosys witnessed further correction.
In coming sessions, market participants will shift their focus on the earning season, upcoming Budget, economic data and US Fed's action.
Top gainers and losers
Grasim surged 11 percent in one week amid strong growth prospects and China plus one theme. As per the report, US ban cotton imports from Xinjiang region over concerns about forced labour.
Energy stocks were in buying radar this week, stocks like ONGC and Coal India were among the top performers with gains of 10 percent and 7 percent respectively.
FPIs turned net buyers this week and beaten down banking & financial stocks witnessed a strong rally this week. Bajaj twins, Axis Bank and ICICI Bank were among the top gainers this week.
After posting a sharp rally last week, IT and Pharma stocks witnessed some profit booking ahead of the earning season.
Stocks like Tech Mahindra, Infosys, Divi’s Lab, Dr. Reddy’s Lab, and Cipla were the top losers this week.
(Ankit Pareek, Research Analyst, Choice Broking)
