Markets remained range bound for most part of the week seeking direction in the F&O settlement week.
Bharti results came as a surprise to the markets on the last day of the week which gave the markets clear direction taking the markets to high above 5,100, levels not seen since the Budget day.
BSE benchmark index added another 3.8 per cent for the week closing higher for third week in succession. Sensex rose by 643 points for the week to close at 17,125.
Nifty gave an upward breakout from its trading range of 5,080 – 5,000 to gain 3 per cent for the week to close at 5,112 an addition of 152 points over previous week.
Crude prices continued to gain higher to post new lifetime highs almost touching highs of $120 mark adding another 2 per cent for the week. Support exists at $114-115.
World markets
US and European markets closed marginally higher after trading in a ranged based markets while Asian markets registered handsome gains. Chinese markets rebounded sharply to post a 14 per cent rise on a weekly basis followed by Hong Kong gaining 7 per cent. Nikkei, Taiwan, Korea all closed on a positive note too.
Sectoral indices
All the BSE sectoral indices managed to close higher than the previous week except the IT/Technology sector. IT stocks came under profit booking to end the week on a losing side.
Telecom stocks were the leaders for the week after Bharti reported better numbers. Bharti gained 10.5 per cent for the week due to which other telecom stocks too found buying support.
Reliance Communication gained 8.5 per cent and Idea Cellular added 8 per cent for the week. Banking and real estate gained over 6 per cent for the week. Financial stocks were back in flavour with institutions stocks like IDBI, IDFC and IFCI gaining smart ground.
Metal prices were quoting higher on the LME. Metal index rose by 7.3 per cent for the week. Oil, Auto and FMCG were marginal gainers.
Mid-cap action
Mid-cap and small-cap stocks were on a full throttle with smaller stocks in the range of Rs 50-100 gaining considerable ground. Momentum stocks were back in action with stocks like IFCI, Ispat, Ashok Leyland, Hotel Leela with most of them adding more than 10 per cent each.
Fertiliser stocks continued from last week to extend the gains. Sugar stocks too were quoting higher on reports of government deregulating the sugar industry.
Sugar momentum stocks Renuka, Bajaj Hind and Balrampur gained by more than 10 per cent each. Mid-cap and small-cap indices added over 2 per cent each.
Momentum positive
The indices continued its way to the north making it the third consecutive week of positive gains rising from 4,700 levels to 5,100 levels. Markets have moved above the 5,100 and 17,000 mark after a span of almost 50 days.
Markets are likely to stay into positive territory going ahead. Technically indicators are on the higher side which could bring in profit booking at higher levels. On the higher side 17,600-17,700 and 5,250 are resistance levels.
The RBI policy and the Fed meet would be events to watch out this week. Market momentum has turned positive with downsides capped. The rally could extend upto 5,300 levels on the Nifty and 18K on the Sensex.
Sugar stocks like Bajaj Hindustan and Renuka would be the best picks for the coming week.