The market snapped three-week losing streak and clocked nearly 2 percent gains for the week ended March 7, thanks to healthy GDP growth in Q3FY25, recovery in consumption, and sharp fall in oil prices. Optimism over China's stimulus, and steep decline in US dollar index also market sentiment, despite ongoing uncertainty over Trump's economic policies.
The Nifty 50 rallied 428 points (1.93%) to finish the week at 22,553, and the BSE Sensex jumped 1,134 points (1.55%) to 74,333, while the Nifty Midcap 100 and Smallcap 250 indices outperformed the benchmark indices, rising 2.66% and 5.5%, respectively.
In the coming holiday-shortened week, the benchmark indices may remain in positive mood amid rangebound trading, due to favourable factors like weakening oil prices and falling US dollar index, with focus on US and India inflation, and trend at institutions' desk.
Technically, the short term trend seems to have shifted in favour of bulls from bears as the Nifty 50 filled the bearish gap of February 28 and sustained well above 22,500 in the past two sessions with higher highs-higher lows formation for third consecutive session. The index stayed above 5 and 10-day EMAs, while it smartly defended 100-week EMA last week. The index formed long bullish candlestick pattern on the weekly chart with above-average volume. Hence, as long as it holds 22,500, the move toward 22,750-22,800 can't be ruled out in the coming week as above it 23,000 is the level to watch, however, the support is placed at 22,200 zone.
The weekly derivative data indicated that the Nifty may see a trading range of 22,300-23,000 in the short term.
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