Tuesday, April 23, 2024
Home News Top factors behind Friday's bull run

Top factors behind Friday’s bull run


Domestic markets rose for the third day in a row on Friday as investors’ risk appetite increased as worries about a global banking crisis diminished.

The benchmark index, the Nifty, increased by more than 250 points, or 1.6%, to a 50-day high of 17,364, while the S&P BSE Sensex increased by more than 1,000 points, or 1.6%, to 58,976.

After the conglomerate decided to separate its financial services unit from the conglomerate, index-heavyweight Reliance Industries saw its overall gains largely pared as shares rose more than 4% in intra-day deals.

In addition, the larger markets displayed strength as small-cap stocks outperformed frontline indices.

However, given that the markets will experience data-driven movements in the coming days, analysts remain cautious regarding the sustainability of this recent rally.

“In the past two days, foreign institutional investors (FIIs) have become buyers because nifty valuations are now reasonable. The market is oversold and this could prompt short-covering and a strategic meeting in the close to term. However, FIIs will once again become sellers at higher levels, making a sustained rally unlikely. Coming days will see a ton of information or news driven market action. According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the March results season (Q4FY23), which runs from January 13 to April, as well as the RBI’s decision on interest rates on April 6th, “will trigger stock price movement.”

In the meantime, the following are the top five reasons why the market moved on Friday:

Strong Global Signals: US markets extended their winning streak for a second day in a row after renewed buying in technology names eased concerns over the banking crisis. The Dow Jones, S&P 500 and Nasdaq Composite climbed up to 0.7 percent overnight. In addition, an increase in weekly jobless claims has raised expectations of a slowdown in monetary policy tightening.

On Wall Street, tracking positive moves in Asia-Pacific markets also closed higher this morning. Major indices Nikkei 225, Topix, S&P 200, Kospi and Hang Seng rose up to 1 per cent each.

RIL leap forward: Shares of index-heavyweight Reliance Industries rose over 4 per cent to Rs 2,333 per share in Friday’s intra-day trade after the group said it would get to complete the demerger of its financial services unit on May 2, 2023. As per the scheme, shareholders of RIL will receive shares in the demerged entity for every share held in the company. Read more


Change in FII Flows: FIIs have turned to Indian markets on the back of attractive valuations following the turmoil in the markets following the global financial turmoil. FIIs bought shares worth Rs 2,776.5 crore in the last two days. He has bought shares worth Rs 1,639.8 crore so far this month.

Rupee strengthens: The rupee appreciated by 24 paise to 82.1 in early trade on Friday on strong global cues and foreign inflows. The dollar index, which gauges the greenback’s strength against six major currencies, meanwhile rose 0.05 per cent to close at 102.2.

Technical Factors:After absorbing a number of negative market news, the NSE Nifty index is undergoing a time-wise correction, as shown by the charts. After remaining in the “oversold” zone, technical analysts believe that the benchmark index may move towards the 17,500 mark.

In their daily note, analysts at ICICI Securities stated, “We expect Nifty to resolve last 12 sessions’ upper upper band of 17,200-16,800, paving the way for a gradual up move towards 200 days-EMA placed at 17,500.” After a close approach to the lower band of a four-month descending channel, global negative news.


Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...


Please enter your comment!
Please enter your name here


Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments