Indian equity indices remained sideways for the whole day, ending on a positive note on Friday. The Nifty 50 rose 12 points or 0.05% to settle the day’s trading at 24,823. The Sensex settled 33 points or 0.04% higher at 81,086. ICICI Bank, Bharti Airtel, Bajaj Auto, Tata Motors, and M&M were the top five major contributors. Market breadth was in favour of bears as 1,400 stocks declined of 2,795 stocks being traded on NSE.  

Nifty closed the week with a gain of 0.47% while the Sensex inched up 0.72%. 

Sectoral Index

The Bank Nifty settled 52 points or 0.10% lower at 50,933.45. The Nifty Midcap 100 pulled back 289.55 points or 0.49% to 58,555.30. In the broader markets, smallcap and midcap stocks closed in the red.

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“On Monday, markets will likely react to global cues following the US Fed speech. We recommend maintaining a positive outlook unless the Nifty decisively breaks below 24,500. We continue to believe that the banking sector holds the key to the next directional move, as other sectors are engaged in a balancing act. In the meantime, traders should avoid taking aggressive positions and stay stock-specific,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.

Technically, the index entered the gap zone of 24,852-24,956 but faced resistance, leading to the formation of an inside bar candle on the daily scale, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates. “On the weekly scale, the index has formed a bullish candle, indicating underlying strength. On the downside, the 21-day Exponential Moving Average (DEMA), positioned near 24,510, will act as strong support. As long as the index holds above 24,500, a “buy on dips” strategy should be employed. On the upside, levels around 24,960 and 25,080 will act as resistance points for Nifty,” said Yedve.

Bank Nifty

“The Bank Nifty also witnessed rangebound price action and closed marginally in the red. The Bank Nifty can resume its upmove after a couple of days of consolidation. On the upside, we expect can now witness an upmove towards 51500 – 51900 from a short-term perspective. A stoploss of 50400 should be maintained for the long positions,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.