Buoyancy in the Indian market continues and there has been notched levels of 17,300 and 58,000 on the Nifty and Sensex, respectively. On a weekly basis, the week to September 3, 2021, it was the best week since February. Both the Nifty and Sensex index gained over 3 percent during the week.
On the last trading day, Reliance Industries added the most in terms of market value. A number of positives during the week including the GDP Q1 number plus the dovish view of the Federal Reserve have revived sentiment on the street. Now amid buoyancy and immense liquidity on the sidelines, the cheerful mood shall likely continue as the recent US jobs data released yesterday provided for lower than expected results, implying the Fed will not be propelled to taper its asset purchase programme as has been announced earlier in a hurry.
Notably while IIP numbers will be watched out for next week, there is a concern that household savings as well as private consumption has taken a hit because of rise in health expenditure as well as loss of income, so the mood in the overall economy remains cautious. This hence could weigh on the street with mild interim correction.
Importantly, it will be a truncated week, with a trading holiday on September 10, 2021
The Nifty index again breached the immediate resistance of 17250 and settled above it. Overall, the index is in momentum with bullish strength. Moreover, the index has given a Rising Trendline breakout on a weekly chart, which indicates further robustness in the counter. All the key indicators like RSI, MACD & Stochastic are supporting the positive trend in the index. Hence, market sentiments remain bullish along with the volatility. At present, the psychological level of 17500 could be a resistance while on the downside, 17100 may act as support for the index.