Dalal Street's bull run is now in its fifth week. Indian equities indexes closed the holiday-shortened week with a gain of more than 2 percentage points, buoyed by better-than-expected GDP statistics and exit poll results. The BSE Sensex increased 1,511 points, or 2.29 percent, to 67,481 for the week ending December 1, while the Nifty increased 473 points, or 2.39 percent, to 20,268.
The BSE Oil & Gas index gained the most (5.8 percent) during the previous week. While the BSE Power and BSE Capital Goods indices have increased by 5.7% and 3.7%, respectively. Furthermore, all main sectoral indices on the BSE finished in the green, with solid weekly gains. During the week, 46 firms in the Nifty 50 index produced positive returns to investors. Axis Bank emerged as the index's top gainer, with a weekly gain of 9.5%.
It was closely followed by Britannia Industries (7.0%), Bharat Petroleum Corporation (6.7%), Hero MotoCorp (6.1%), and NTPC (6.0%). Ultratech Cement and Shree Cement both increased by more than 5%.IndusInd Bank, Power Grid Corporation of India, and Reliance Industries, on the other hand, fell 1.0%, 0.3%, and 0.1%, respectively.
Wrapping Up the Market
According to Vinod Nair, Head of Research at Geojit Financial Services, the market reached new highs this week, emphatically breaking over a key resistance level and ending strongly above 20,000. Global markets saw a bullish trend, driven by hopes that the ECB's rate-hiking cycle has ended amid declining inflation.
"Strong Q2FY24 GDP figures and a notable surge in manufacturing activity boosted the Indian economy significantly, significantly improving the growth outlook." "The IPO market remained active, as evidenced by Tata Technology's historic listing, fostering increased investor confidence in riskier assets," Nair said.
He went on to say that the broader market outperformed, with mid- and small-cap stocks exhibiting resilience and no symptoms of tiredness. Investors remain bullish on government investment and increased consumption, which will fuel GDP in H2FY24 due to lower inflation. Despite the OPEC+ production cut, oil prices have continued to fall.
The much-anticipated exit polls also helped, strengthening investor confidence in the present union government. What to anticipate next week: "In the coming week, investors' attention will be primarily focused on the release of service PMI data from the United States, India, and China." The RBI policy meeting is next week; expect the status quo; nevertheless, the growth projection may be improved. The steady return of FIIs in November indicates that the good momentum will continue," Nair added.
Technical Prognosis
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty continues to rise as the bulls maintain control. A weekly consolidation breakout appears likely, opening the path for the index to continue rising. "Sentiment remains positive, as evidenced by a bullish crossover in the weekly RSI." Support at the lower end is firm at 20,200; any falls could be viewed as buying opportunities as long as it remains above this level. "On the higher end, resistance is expected to be around 20,450-20,500," stated De.
