This Article is From May 18, 2019

Weekly Wrap: Sensex, Nifty Halt Weekly Rout, Log Best Gains In Nearly Two Months

Anirudh Saligrama
Markets
May 18, 2019 10:46 am IST
- Published On May 18, 2019 10:46 am IST
- Last Updated On May 18, 2019 10:46 am IST

Read Time: 3 mins

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Weekly Wrap: Sensex, Nifty Halt Weekly Rout, Log Best Gains In Nearly Two Months

A monitor shows stocks rallying while a trader talks on a phone on the trading floor of the Motilal Oswal Financial Services Ltd. office in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

Indian equity benchmarks halted their weekly rout and gained the most in nearly two months ahead of exit poll results despite global headwinds.

The S&P BSE Sensex closed 1.2 percent higher this week at 37,930 and the NSE Nifty 50 gained 1.1 percent to end at 11,407.

“The markets showed tremendous strength and gained nearly one and half percent amid mixed cues,” according to Jayant Manglik, president (retail distribution) at Religare Broking. “The participants took note of the Finance Commission's report which states that India's GDP shows sign of continued growth despite volatile global trend,” Manglik said in a statement. “Besides, encouraging earnings announcements further boosted the sentiment.”

The markets will react to exit polls in early trade on Monday and that could set the tone for the rest of the day as well. Also, the prevailing negotiations between the U.S. and China would be on the traders' radar. We expect volatility to inch higher.

Jayant Manglik, President - Retail Distribution, Religare Broking

Manglik advised investors to prefer hedged trades and avoid over-trading.

Bullish Signal

The Nifty, which had fallen below its 100-day moving average—the average closing price over the last 100 days—of 11,142.51, rebounded after rallying in the last two sessions. It's now 60 points shy of the 50-day moving average.

“The Nifty witnessed a consolidation breakout in a smaller time frame,” Hadrien Mendonca, senior technical analyst at IIFL, told BloombergQuint over the phone. He expects an uptick of 100-150 points in the 50-share gauge from the current levels. The downside, if any, will be limited, he added.

The fast-moving consumer goods stocks look impressive in the near term, Mendonca said.

How Broader Markets Performed

The broader market index represented by the NSE Nifty 500 Index closed 0.43 percent higher at the end of the week on Friday, led by the gains in Indiabulls Ventures Ltd. and Chambal Fertilisers and Chemicals Ltd.

Nifty Pharma Under The Weather

Six out of the 11 sectoral gauges compiled by the NSE ended lower this week, led by the NSE Nifty Pharma Index's 5.5 percent decline. On the other hand, the NSE Nifty Financial Services Index was the top gainer, up 3.2 percent.

Rupee Extends Fall

The Indian rupee continued to weaken against the U.S. dollar for the second straight week. The domestic unit depreciated 0.5 percent this week to close at 70.22 against the greenback.

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