Nifty Pharma surged over 3.5 per cent led by Torrent Pharma, Aurobindo Pharma, Cadila Healthcare and Sun Pharma.
Amid high volatility, the swing continued throughout the session with the benchmarks moving frequently between gains and losses in the first half of the Friday’s trade and then finally settled in the negative territory. Sensex fell 129 points or 0.34 per cent to close at 37,607, while the NSE’s Nifty was down 29 points or 0.26 per cent to close at 11,073.45. Index heavyweights such as Reliance Industries (RIL), HDFC Bank, HDFC, Kotak Mahindra Bank and Asian Paints contributed the most to the indices’ losses.
In India, the uncertainty was visible as profit booking and post-earnings results performance of index heavyweights, impacted the benchmark indices. On a weekly basis, the indices closed with slight losses following results- heavy week and stock-specific action in the benchmark indices while at the same time virus infections continued to increase.
Among top Sensex laggards were RIL, HDFC Bank, Kotak Mahindra Bank, Bajaj-Auto, Asian Paints and HDFC. On the flip side, Sun Pharma was the top index gainer which gained over 4 per cent, followed by State Bank of India (SBI), M&M, HCL Tech, Axis Bank, ONGC and Tech Mahindra.
Nifty Pharma surged over 3.5 per cent led by Torrent Pharma, Aurobindo Pharma, Cadila Healthcare and Sun Pharma. On the other hand, Nifty Financial Service fell 0.61 per cent dragged by losses in Cholamandalam Investment and Finance Company, ICICI Lombard General Insurance Company, and HDFC Bank.
India VIX falls 3%: India VIX opened at 24.7 on Friday and went down till 23.9 mark. However, the high of the volatility index was at 25.3. It closed at 2.78 per cent down at 24. This volatility kept Friday’s trade range-bound.
Next week expectations by Avtar Singh, Founder & CEO Ace Investment Advisory
It is now in the hands of RBI to further lubricate the economy either by a decent rate cut or policy initiatives. Their stance on the moratorium or onetime restructuring (COVID-19) will set the tone for the entire financial sectors for weeks ahead. In general, Bank Nifty has underperformed and pessimism continues to run high.
Therefore, any move by RBI will create short term volatility in the banking stocks. Yes Bank’s capital raising was not lauded by the market as expected and hence it can be concluded that capital hungry sectors will remain under pressure going ahead. Investors are advised to remain cautious and partly book profits. They should wait for a sharp correction before making any fresh bets.
Nifty Outlook: Nifty50 closed lower on Friday at 11073.45 level, -28.70 points, or -0.26 per cent. Today Nifty Support : 11000 and 10900 Resistance : 11200 and 11250.
Nifty Weekly Outlook: Nifty Support : 10900 and 10700 – Resistance : 11200 and 11400.
