It turned out to be a fabulous Friday for the investors on Dalal Street after a brutal sell-off in the previous trading session amid positive trends from global markets and across-the-board buying.
The 30-share BSE Sensex ended 1,534.16 points higher to settle at 54,326.39. During the day, it zoomed 1,604.2 points or 3.03 per cent to 54,396.43. The broader NSE Nifty jumped 456.75 points to finish at 16,266.15.
All the Sensex firms ended in the green, with Dr. Reddy's, Reliance Industries, Tata Steel, Nestle, Larsen & Toubro, Axis Bank, IndusInd Bank, Sun Pharma, State Bank of India, and HDFC emerging as the biggest gainers.
On Thursday, equity benchmark Sensex dived over 1,500 points to hit an intraday low of 52,669.51 and Nifty also tanked over 400 points amid an extremely weak trend in the global markets.
The 30-share BSE benchmark settled 1,416.30 points lower at 52,792.23. The broader NSE Nifty tumbled 431 points to 15,809.40.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd said, "It would be important to keep a regular tab on global developments and one should certainly be prepared for surprising moves on either side."
"As far as sectoral participation is concerned, we witnessed some decent relief moves in most of the beaten heavyweight spaces this week. Also, the broader market has started to show some encouraging signs, which we believe should do extremely well if the market remains above the psychological support of 16,000," he added.
"The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside movement momentum for an upcoming session. Moreover, Nifty has been trading in a range of15750-16410 levels throughout the week crossing either side can direct further direction," Palak Kothari, research associate, Choice Broking.
"In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounce back from lower levels can be seen. However, the momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from the oversold zone on an hourly chart which suggests a northward journey in the counter," she said.
"The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels," she added.
"Markets have been seeing a roller-coaster ride and the key is to manage the overnight risk. Going forward, global cues, the last leg of earnings, and updates on the Russia-Ukraine war will be on the radar. We reiterate our advice to focus more on managing risk and preferring hedged bets," said Ajit Mishra, VP - Research, Religare Broking Ltd.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "After witnessing a sharp decline over the past two weeks, the equity markets ended this week on a positive note. However, following global cues, the Indian equity markets have large volatility. Benchmark indices like Sensex 30 and Nifty50 saw gains between 2-3 per cent."
"The metal sector rebounded sharply post a steep correction in recent weeks. The BSE IT index was down in an otherwise positive market this week. FII’s continued with their selling in India. Markets remained wary of global growth-inflation expectations," he noted.
With the result-season coming towards the last leg, the focus will be more on the macro data points. Monetary policy tightening action by Central Banks globally amid high inflation will continue to weigh on market sentiments," added Chouhan.