Indian market shut on Thursday & Friday, gains over 1% for the week
NEW DELHI: The domestic stock market will remain closed on Thursday on account of Holi and on Friday, March 25, on account of Good Friday.
Ahead of the holidays, the market ended on a muted note on Wednesday, but gained over 1 per cent for the week. Both Sensex and Nifty50 closed 1.5 per cent higher for the week ended March 23.
On Wednesday, Sensex closed at 25,337.56, up 7.07 points or 0.03 per cent. The NSE’s Nifty50 ended at 7,716.50, gaining 1.60 points or 0.02 per cent.
For the past two trading sessions, the market has managed to bounce back from its intraday low and closed in green which most analysts think is a bullish sign. However, the trend still needs confirmation.
On a yearly basis, the S&P BSE Sensex is down more than 15 per cent since last Holi, which has destroyed investors’ wealth by more than 11 lakh crore. The total market capitalisation of the BSE-listed companies declined by over Rs 11 lakh crore to Rs 94.15 lakh crore from Rs 105.69 lakh crore recorded on last Holi on March 6, data compiled by ETMarkets.com showed.
Even though the benchmark indices remained under pressure since last March, most analysts said the upward trend still remained intact and investors should look at accumulating quality stocks on declines.
“We expect the market to remain buoyant over the long term on the back of solid fundamentals and improvement in the Indian economy. For the near term, the market should remain healthy as well spurred by the accommodative monetary policy,” Vikas Gupta, CIO at ArthVeda Capital, told ETMarkets.com.
Gupta of ArthVeda Capital expects the rupee to depreciate against the US dollar in line with the long term-trend in calendar 2016. Gupta likes sectors such as technology, PSU basic materials and financials.
Technically, the market has decisively surged past its stiff resistance faced at 7,600 and 7,700 levels, but is now facing pressure at 7,800 level, which also has maximum Call open interest.
“Currently, the market is hovering near the overbought zone, but as such the continued strength can lead to intraday corrections,” said Jimeet Modi, CEO, SAMCO Securities.
“The market can face resistance at its 200-day moving average at 7,800 level. Buy and hold and buy on dips should be the strategies for traders,” he said.