Markets Record Close After GDP Data Confirms Stronger Rally Ahead: Analysts
The Bank Nifty will play an important role in the March series as it has been underperforming, says Ruchit Jain of 5paisa Capital.
The benchmark indices' stellar show on Friday after strong gross domestic product data and positive overnight global cues is only a confirmation for a stronger rally ahead, according to analysts.
The markets have received confirmation for a broader uptrend after being in a time-wise correction phase, according to Ruchit Jain, lead research analyst at 5paisa Capital Ltd.
Markets have gone through a decent consolidation for about one and a half months, Jain said. "Markets were in an uptrend till mid-January and after that, the momentum was not very strong."
Friday's session seems to be a resumption of a broader degree of uptrend, Jain said. "The 40 EMA (exponential moving average) has shifted to around 21,800–21,850, so positionally, that will be a very strong support."
The Bank Nifty will play an important role in the March series as it underperformed in the last few months, according to Jain. "The last all-time high of Bank Nifty was made in December, while Nifty has made so many highs after that."
Support has been formed around the 46,000 mark and if this remains intact, then there can be a move towards 48,500, Jain said.
The NSE Nifty 50 closed 355.95 points or 1.62%, up at 22,338.75, and the S&P BSE Sensex closed 1,245.05 points or 1.72%, higher at 73,745.35. The market capital of the Nifty rose by Rs 4.09 lakh crore on Friday.
The markets will remain open on Saturday as a part of the framework for the business continuity plan and disaster recovery site for stock exchanges and depositories and will involve an intraday shift from the primary to the disaster recovery site.
Saturday's special live trading session holds significance, with the Nifty's projected target aligned at 22,640, while 22,200 stands firm as a robust support level, according to Shrey Jain, chief executive officer of SAS Online. "Any retracement towards this support zone is perceived as an opportune moment for buyers."
The Bank Nifty bulls maintained their dominance, leading the index to overcome significant hurdles with notable volumes, according to Kunal Shah, senior technical and derivative analyst at LKP Securities Ltd. "The current support for the index is established in the range of 47,000–46,900, and any pullback towards this support zone is seen as a favourable buying opportunity."
There is a strong indication that the index is poised to surpass its all-time-high levels situated at the 48,500 mark in the near term, Shah said.
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