Sensex Rises for 3rd Day
Sensex rises for 3rd day again. But a record spike in domestic COVID-19 cases curbed gains. The NSE Nifty 50 index rose 0.53% to 10,607 while the S&P BSE Sensex advanced 177 points to 36,021. Both indexes notched their third straight weekly gain.
Financials stocks were among the worst performers today with the Nifty Bank index falling 0.46%. HDFC Bank Ltd and IndusInd Bank Ltd dropped around 1.5% each.
Here is what experts said on today’s market performance:
Jimenet Modi, Founder & CEO, SAMCO Securities & StockNote
The index is now hovering around 10600 marks which had acted as strong support on the way up and might turn into a crucial resistance. Every leg of the meeting from March till currently is getting smaller in the value go and the entire convention has happened as a rising wedge design which is bearish and may be approaching its end. Despite the fact that there is a ton of hopefulness on the Street and worldwide values on the expectation of positive improvements on sedate preliminaries, we accept the market is overbought for the time being and anticipate a restricted upside. Proceeding we propose financial specialists stay careful as any negative advancement on worldwide value may trigger a hazard avoidance auction. Support for the index is now placed at 10200.”
Globally the US monthly employment report and domestically the PMI survey seemed to indicate that the worst of the lockdown economic impact is over. However, any extension or resetting of lockdown measures, due to increasing infections, could negate the gains. Progress of a vaccine trial also added to the optimism. In spite of improving economic data, markets are still largely moving on hope rather than on any real change in the ground realities. With intraday volatility increasing, investors are advised to remain cautious.”
Sanjeev Zarbade, VP PCG Research, Kotak Securities
“It was a good week for global equities as concerns over reports of a resurgence in Covid-19 infections in the US were offset by improving macroeconomic data points as reflected by the strong non-farm payrolls data in the US. The market mood remained buoyant, bolstered by an uptick in activities and consumption. After a period of sustained one-way movement, it is natural for investors to get complacent. They should guard against this.