Indian benchmark equity indices reversed the two day loss on Jan 08 ending the week on a strong note.  At close Nifty settled 210 points, or 1.48 percent, up at 14,347.25. The Nifty opened with an upgap and remained sideways with an upward bias till late afternoon. Post 1430 Hrs another spurt of buying took Nifty up.  The Nifty gained 2.35% for the week, gaining for the 10th consecutive week –its longest winning streak since June 2009.
 
Volumes on the NSE were higher than recent average. Among sectors, Auto, IT, Media and Pharma were the main gainers, while Metals and PSU Banks were the main losers. Midcap and Smallcap indices rose, but less than the Nifty.
 

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Asian shares rose to record highs on Friday, with Japan’s Nikkei hitting a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year. Most Asian equities were set to notch their biggest weekly gains in many months on Friday.
 
European markets traded higher Friday as global investors anticipate that a Democratic-controlled U.S. government will lead to greater fiscal support. A laboratory study indicated that the Pfizer and BioNTech vaccine is effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa. Eurozone November unemployment rate came in at 8.3% vs 8.5% expected.
 
Nifty closed at another record high. After showing a choppy trend in the last couple of sessions, Nifty witnessed hefty gains on Friday and closed the day higher by 209 points. After opening on a sharp upside gap of 121 points, Nifty continued with upside momentum with range bound action for the better part of Friday's session. Buying got strengthened in the mid to later part and Nifty closed near the upper end of the day.
 
A reasonably positive candle was formed with gap up opening (body gap, not a western gap) and this could signal an upside breakout of the two days sideways range movement at 14250. This is a positive indication.
 
The immediate resistance of 14310 (1.382% Fibonacci projection taken from Jan 20 high and March 20 low) has been surpassed today and Nifty closed above it. Hence, one may expect further upside in the near term.
 
Nifty on the weekly chart formed a long bull candle with minor lower shadow, which indicates continuation of sharp up trended movement as per weekly timeframe chart. Some symmetrical chart patterns are unfolding in the Nifty weekly timeframe chart.
 
Conclusion: The near term trend of Nifty continues to be positive. Friday's upside breakout of small range and a formation of symmetrical pattern on the daily/weekly chart could indicate one more week of upmove is likely in the market before showing any downward correction from the highs. The next upside targets to be watched at 14600 and immediate support is placed at 14200 levels.