Benchmark indices Nifty50 and S&P BSE Sensex both gained 1.28% each to close above 18,000-mark and 60,500 as bulls took control of the D-Street on the last trading day of the week.
However, auto and metal stocks remained under pressure throughout the day amid SIAM October auto data, heavy sell-off and volatility in the global markets.
The week started with disappointing numbers from China, CPI rose 1.5% YoY, while the producer price index rose by 13.5% YoY owing to imported inflation and domestic supply shortages,” said Vinod Nair, Head of Research at Geojit Financial Services.
Dow Jones closed at 36,100.31, up 179.08 points or 0.50%, while Nasdaq Composite added 156.68 points or 1% to 15,860.96 and S&P also got stronger by 0.72% as it settled at 4,682.85, up 33.58 points.
CPI inflation for October is forecasted to remain close to the previous month’s level of 4.35%, while WPI inflation is to show some increase from the September level of 10.66%, said Vinod Nair of Geojit Financial Services.
“Next week is going to be IPO-heavy week where we will have a listing of Policy Bazaar and Sigachi on Monday while Paytm will debut secondary market on 18th November.
The last week saw FIIs continued with selling spree, however, they returned to buying on the last day of the week to push the headline indices Nifty and Sensex close with over 1 per cent gain each.
Technically, Nifty was consolidating between 50 and 20-DMA but if it manages to close above 20-DMA that may lead to further strength.
On the upper side, 18,200 will act as a very strong resistance and if markets break these levels, then the next strong resistance will be 18250 on breaking which 18,400 level is possible,” he said.
“Banking stocks will be in focus with the US declaring T Bonds foreign buying on Wednesday,” said Rahul Sharma, adding that for the banking index, 38,600 will act as very strong support, on breaking which, we might see 38,300 levels.
“Bank Nifty is underperforming, however, it is trading near the critical support zone of 38500-38250, where we can expect a BounceBack.
Besides, the next week will also see Balkrishna Industries Ltd Rs 4-per share finalisation, Esab India RS 22 per share dividend record date, MRF Rs 3 a share dividend ex-date, Page Industries Rs 125 per share record date and Steel Strips Wheels share split from Rs 10 to Rs 5 among other Corporate actions.
Earlier, the stock exchanges remained closed on November 4 and 5 on the occasion of Diwali, except for one-hour auspicious Mahurat trading on Thursday.
On all together a different front, despite daily Coronavirus cases in India has come down significantly, daily deaths may pose a threat to the market.
Rupee rose 7 paise to close at 74.45 against the dollar on Friday as domestic equities acquired a firm momentum to help boost investor sentiments.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.01 per cent at 95.18.