Mumbai, 21 June (IANS). Market analysts said on Saturday that the Equity Benchmark of India concluded the session last week with firmness.
The Nifty closed above the last 25,000 points on Friday, which reflects the speed of rapid speed.
At the end of the trading, the Sensex rose 1,046.30 points or 1.29 percent to closure at a new level of 82,408.17, while the Nifty rose 319.15 points or 1.29 percent to close at 25,112.40.
According to a note by Bajaj Broking Research, “Constant investment from both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) played a major supporting role, which balanced the adverse conditions arising out of existing geopolitical uncertainties and strengthened positive spirit throughout the market.”
The Nifty Index made a large bull candle with the highest high and the highest low, indicating the upwards after the recent correct consolidation. In this process, the index was firmly closed above the 25,000 level, indicating the strength.
The note stated, “Moving forward, we hope that the index will re-test the upper boundary of the recent five-week consolidation zone, which is currently close to 25,200 points. A decisive breakout over this resistance band can open the doors for expansion of 25,500 zones in the near future.”
The Indian stock market ignored instability in the middle of the week due to rising tension in the Middle East and a sharp rise in crude oil prices.
Financial shares were promoted by the Reserve Bank of India relaxing the project finance criteria.
Vinod Nair, the research head of the Geojit Investments Limited, said, “The constant soft treasury of the RBI strengthened the market confidence, which was established as a major stable force amidst global uncertainty.”
Due to geopolitical uncertainty, crude oil prices jumped at the beginning of the week, increasing concerns about inflation. However, after the initial surge, the speed of increase in oil prices was significantly reduced, which reduced the possibility of continuous surge in inflation.
Analysts said that the perception of investors towards the pharmaceutical sector has become cautious after the proposal to impose new tariffs.
With the 90-day break deadline on the reciperook tariff, the markets are closely monitoring business talks and bargaining activity in the next two weeks.
Nair said, “In the meantime, geopolitical uncertainty remains, as the statements of global leaders about possible military partnership in the Middle East have maintained concern in the market. Investors will keep a close watch on the upcoming American GDP and PCE data as well as PMI data of India, so that there are signs of economic reforms and directions in the country and abroad.”
-IANS
SKT/
