Mumbai, May 9 (IANS). Indian stock market witnessed good gains this week due to softening of crude oil prices, strengthening of rupee and fall in 10-year bond yield, although geopolitical tensions still remain a matter of concern for the market.
Nifty registered a gain of 0.76 percent during the week. However, on the last trading day it fell 0.60 percent and closed at the level of 24,180. At the same time, Sensex fell by 516 points or 0.66 percent and closed at 77,328, but it gained 0.54 percent in the entire week.
A market analyst said, “Due to the improvement in economic conditions, the market sentiment shifted from initial cautiousness to a positive direction. Due to this, the market remained strong despite profit-booking at the end of the week.”
State election results and better fourth quarter results also boosted investor confidence. Midcap and smallcap indices outperformed the major indices. At the same time, good buying was seen in shares of auto, defence, real estate and pharma sectors.
During the week, Nifty Midcap100 index recorded a gain of 3.49 percent and Nifty Smallcap100 recorded a gain of 4.05 percent.
Market experts say that the market is currently getting support from stable crude oil prices and strengthening rupee. But in case of increasing tension in West Asia, pressure on commodity related sectors may increase.
At the same time, due to increasing tension between America and Iran, there was a decline in the domestic market on the last trading day of the week. Due to this, investors started reconsidering their hopes for an early peace agreement and concerns about energy supply increased.
Iran claimed that the US had violated the ceasefire agreement. However, US President Donald Trump said the ceasefire was still in force, while Iran also said the situation was normal.
In the international market, the price of Brent crude fell by more than 3 percent to below $ 95 per barrel. At the same time, the future prices of crude oil in the domestic market also slipped below the level of Rs 9,000.
According to market experts, the level of 24,250 to 24,300 is currently considered a strong resistance zone for Nifty, while the range of 24,100 to 24,000 remains an important support level.
At the same time, if Bank Nifty continues to remain strong above 55,500, then it can reach the level of 55,800 to 56,000, which will strengthen the bullish trend in the near term.
Investors are now keeping an eye on the inflation data of India and America as well as the domestic credit growth data, as these will decide the future direction regarding RBI interest rates and profits of companies.
–IANS
DBP
