Sensex back above 50K-BSE500 Index, more than 60 stocks ran 10-40%, how can the market move forward

In the week ending May 21, the market reins remained in the hands of the Bulls. Sensex and Nifty managed to close above their critical registration levels. The Sensex once again went above 50,000 while the Nifty managed to close above 15,100.

Yesterday was the biggest weekly rally in the market since the budget week. In the week ended yesterday, May 21, the Sensex has seen a growth of 4 percent while the Nifty has seen a growth of 3.4 percent.

This week, there were 61 stocks in the BSE 500 index which saw a 10–40 per cent gain. These include Gland Pharma, Firstsource Solutions, RBL Bank, SBI, Adani Total Gas, CSB Bank, India Cement, HFCL, and TCS Express.

Despite all the global difficulties, the Indian market remains strong. The US Fed has indicated that there may be a slowdown in bond purchases in the near future. This news had a negative impact on the market. On the other hand, the market sentiment has been strengthened by the strong results of the March quarter and the relief on the Covid front.

Vinod Nair of Geojit Financial Services Says that the Indian market has started to perform much better than the emerging market. This trend will continue with the decline in the cases of Covid. The rupee is also showing strength. This is a good sign. Nair further said that the entry of new vaccine in the market will reduce the problems related to vaccine supply. The new Corona case will also decline. Which will give a further boost to the market sentiment.

Sectoral view

Shopping is being seen in banks, power, realty, auto, and consumer discretionary stocks. Banking shares have been bolstered by the strong results of State Bank of India. However, correction and consolidation has been observed in the BSE Reality and Power Index for a few weeks. Market giants are showing signs of strengthening in reality stocks with strong results from India Bulls Housing Finance in the fourth quarter.

Technical view

On Friday, the Nifty has managed to close in its important registration level of 15,100 levels. With this, it managed to stick to its important part and long-term moving average. Experts believe that since the Nifty has strongly crossed 15,000 levels on both daily and weekly closing basis, there is a possibility that it can now move towards 15,400 and 15,500.

Ashish Chatur Mohta of Sanctum Wealt Says that for the last 10 weeks Nifty has been trading in the filed of 15050-14,200 and it has formed a base. Its next level is its all-time high of 15,431. This level should be monitored next week.

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