Moneycontrol News

The S&P BSE Sensex gained momentum in the second half of trading session on Friday to close with gains of over 200 points, led by banking stocks. The Nifty50 formed a Bullish Engulfing Pattern on the daily charts and a Doji type of candle on the weekly scale.

“The Nifty gained over half a percent and reclaimed 10,800, thanks to a strong surge in index majors in last hour. Buying in index heavyweights mainly from the banking, FMCG and pharma space gradually pushed the index higher,” Jayant Manglik, President, Religare Broking Ltd.

“We believe Nifty would extend this positive bias but recovery in broader market is equally essential. We expect private banking and financials counters to do well along with select pharma and FMCG majors,” he said.

Manglik further added that traders should prefer these sectors for fresh longs while the recovery in PSU banks and metal should be used to reduce long positions if any.

On the weekly scale, the S&P BSE Sensex closed marginally higher with gains of 0.19 percent while the Nifty50 which bounced back from lows closed flat. Top Nifty gains on weekly basis include names like ICICI Bank (up 6.4 percent), HDFC (up 4.3 percent), BPCL (up 3.6 percent), Bajaj Finserv (up 3.5 percent), and HDFC Bank (up 2.9 percent).

Losers for the week include names like UPL which slipped 8.6 percent, followed by Hindalco which was down 6.5 percent, and Coal India dropped by 5.2 percent.

Sectorally, the Nifty Bank closed 1.3 percent higher for the week, followed by the Nifty Metal index which rose 3.1 percent, and the Nifty PSU Bank index gained 2.8 percent.

On the losing side, the Nifty IT index slipped 2.4 percent, followed by the Nifty Junior Index which fell 1.3 percent, and the Nifty Auto index was down 0.8 percent. The Nifty Midcap index slipped 1.1 percent while the Nifty Smallcap index was down 2.5 percent.