Saturday, April 13, 2024
Home News Top factors behind Friday's bull run

Top factors behind Friday’s bull run

Factors,

After worries about a global banking crisis subsided, investors increased their willingness to take risks, which resulted in gains in domestic markets for the third day in a row.

The benchmark index, the Nifty, increased by more than 250 points, or 1.6%, to a 50-day high of 17,356, while the S&P BSE Sensex increased by more than 900 points, or 1.6%, to 58,941.

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, given that FIIs will once more turn sellers at higher levels, a sustained A rally is unlikely. Coming days will see a ton of information or news driven market action. “The January-March results season (Q4FY23) beginning on April 13 and the RBI decision on interest rates on April 1 will trigger stock price movement,” stated Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

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

Strong Global Signals: After concerns about the banking crisis were eased by renewed buying in technology companies, US markets extended their winning streak for a second day in a row. Overnight, the Nasdaq Composite, S&P 500, and Dow Jones all experienced gains of up to 0.7%. Expectations of a slowdown in monetary policy tightening have also been raised by an increase in weekly claims for unemployment benefits.

On Money Road, following positive moves in Asia-Pacific business sectors additionally shut higher toward the beginning of today. The Nikkei 225, Topix, S&P 200, Kospi, and Hang Seng major indices all experienced increases of up to 1%.

RIL leap forward: After the company announced that it would be able to complete the demerger of its financial services unit on May 2, 2023, shares of index-heavyweight Reliance Industries rose by more than 4% to Rs 2,333 per share in intraday trade on Friday. For every share held in the company, RIL shareholders will receive shares in the demerged entity, according to the plan. 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.

RELATED ARTICLES

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,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SIGNUP & GET $10000 BONUS

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