Banks lift Sensex by nearly 900 points; Natco Pharma & Torrent Power shine
Market Update at 2:45 PM: Sensex gained nearly 900 points, owing to the stellar performance given by private banks even as Dr Reddys and Power Grid slipped into the red zone.
IndusInd Bank is the top Sensex gainer, up by more than 4 per cent, followed by ICICI Bank, HDFC Bank, and SBI, which are up by more than 3 per cent each.
BSE Mid-cap and BSE Small-cap indices are seen underperforming Sensex on Friday.
Motilal Oswal, Torrent Power, and Adani Transmission shine in the mid-cap space while Thangamayil Jewellery, IIFL securities and Butterfly Gandhimathi sizzled in the small-cap space.
All the sectoral indices were in the green with Bankex being up by more than 3 per cent, claiming the title of the top sectoral index performer on Friday.
Market Update at 10:20 AM: Sensex is trading comfortably above the important 50,000 levels during Friday's morning session, taking cues from the global markets.
Banks are dominating Sensex with IndusInd Bank, ICICI Bank, and HDFC Bank being the top Sensex gainers in the morning session.
On the other hand, Power Grid and Dr Reddy's are the only two Sensex stocks that are trading in the red.
Mid-caps and Small-caps are seen underperforming Sensex on Friday.
Adani Transmission, Crompton Greaves, and Oberoi Realty are the top-performing mid-caps.
HFCL, Shivam Autotech, and Soril Infra are the top-performing small-caps in today's opening session.
All the sectoral indices are trading in green with Bankex being the top performer, led by IndusInd Bank, which is up by more than 3 per cent.
Nifty opened with a positive bias and within no time, it went onto touch the high of 15,069 but failed to hold on to those gains for long and thus, slipped lower amid volatility. Thereafter, it remained under pressure and closed in negative terrain for the second straight session on Thursday.
Nifty formed a bearish candle on the daily chart, carrying lower high & lower lows from the last couple of sessions. Nifty closed below the 38.2 per cent retracement level. After two days of euphoric move and a breakout, it failed to sustain the momentum. The low-volume breakout failed to get follow-through days. It closed below the swing high of May 10 and tested the prior multiple resistance line of 14,880. With this, an ascending triangle, as well as the breakout of the inverted head & shoulders pattern, failed.
Barring PSU Banks and realty indices, all other sectoral indices declined while the negative market indicates an inherent weakness. On a weekly chart, though there’s still one more day left, Nifty is forming a shooting star candle, as it has already declined over 50 per cent of the current candle. It closed below the 5-EMA but took support at 8-EMA.
A close below the 14,850 on Friday will be a breakdown of an ascending triangle. As this pattern has already failed, the breakdown repercussions will be extremely bearish. In this background, Friday's weekly closing is very critical.
In a bull case scenario, if Nifty closes above 14,970, the index will regain the short-term strength. Wait for the weekly bar to close in order to find out a direction for the near future.