Equity benchmarks traded with high volatility and despite Friday’s sharp decline, the index closed higher for a second consecutive week.
Nifty traded with positive bias in the first four trading session and formed an intra-week high of 11118 points. However, a sharp decline on Friday’s session saw the index gave up most of its intra-week gains to close the week at 10943 points levels up by 0.5 per cent. Broader markets underperformed the benchmark indices as the Nifty Midcap and small-cap indices closed sharply lower by 2.5 per cent and 3.5 per cent respectively.
The S&P BSE Sensex closed at 36546 points, up by 77 points while the NSE Nifty closed at 10943 points, up by 50 points for the week.
Among the Nifty constituents, Bajaj Auto, Bajaj Finance, Eicher Motors, Hero Motocorp, Infratel, Kotak Bank, Reliance Industries, Tech Mahindra, Titan UPL and Zee Entertainment were the top gainers whereas Hindalco, Indiabulls Housing Finance, JSW Steel, L&T, NTPC, Tata Motors, Yes Bank and Vedanta were major draggers on the index.
Nifty during previous week registered a breakout from last seven week’s broader consolidation of 10987 to 10584 points indicating a continuation of the positive trend followed by profit booking on Friday as preceding 7-day rally led to daily stochastic into overbought territory.
According to experts, it is being believed that a temporary breather in the coming two or three sessions would make price structure healthier as it would help the market to cool off the overbought situation, in turn, sets the stage for next leg of an up move towards 11200 points levels.