Indian equity indices ended on a higher note on Friday, ending the week positively. Nifty 50 jumped 186 points or 0.77% higher, than its previous close, to settle the day’s trading at 24,502. Nifty hit a new record high of 24,592.20 during the day, around 8 points away from 24,600.
Similarly, the BSE Sensex soared 622 points or 0.78% to settle the day’s trading at 80,519. The index comprising 30 stocks made a fresh record high of 80,893.51 during the day. TCS, Wipro, Infosys, HCL Technologies, and LTIMindtree were the significant gainers in Friday’s trade.
Markets are up for the sixth week in a row. Nifty 50 gained 0.73% in the last five days and Sensex 0.89% in the same time period.
Sectoral Index
Bank Nifty rose 8.25 points or 0.02% to end the session at 52,278.90. Nifty Midcap 100 advanced 25.55 points or 0.04% closing the day’s trading at 57,173.80. In the broader markets, smallcap closed majorly in the green while the midcap stocks closed in the red.
Sectoral draggers
Among the sectoral indices, Nifty IT took the front indices to a new high after TCS reported its Q1 FY25 results. Also, Nifty Media surged significantly higher during Friday’s trade. However, Nifty Realty weighed on the markets.
“Multiple tailwinds led the market to come out of the range-bound trajectory. The strong result from the IT bellwether and a drop in US inflation to a one-year low added optimism to the market. The chances of a rate cut in September are inching higher, which is evident in the fall of the dollar index. We expect stock-specific moves to gain traction due to the ongoing earnings season and upcoming budget; indeed, IT will be in the limelight due to the good start to the earnings and outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The rotational buying across heavyweights is helping the Nifty index maintain its positive momentum, but sustained levels above 24,500 are needed to reach the new milestone of 25,000. We recommend traders continue with a “buy on dips” approach, focusing on stock selection and trade management. Besides domestic factors, participants should closely monitor global indices, especially the US markets, for cues,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
Bank Nifty
The Bank Nifty remained volatile throughout the day before closing flat. According to Rupak De, Senior Technical Analyst at LKP Securities, sentiment might continue to favour the bulls, as the index appears to have found support at the 21 EMA on the daily timeframe on Thursday. “The buy-on-dips strategy looks best from the current perspective until it falls below 21,700. On the higher end, resistance is visible at 52,800; above 52,800, the index might continue its upward journey towards 54,000,” said De.
