The previous week’s trend remained a mixed one for the market with the first three days remaining choppy with a weak undertone. However, the last couple of days saw a sharp rebound. The rally in the latter half helped the market to maintain its winning streak for the third consecutive weeks.
On a week-on-week basis, the BSE Sensex surged 291 points or 1.9% to close at 15670.31. The S&P CNX Nifty ended at 4636.45, up by 68 points or 1.5%. The RBI credit policy came with no surprise on Tuesday and market remained highly choppy till Wednesday. A sharp fall in the Chinese market on Wednesday, on expectations of lending restrictions by some banks weighed on the Indian markets too, however short covering at the lower levels helped in a quick recovery. Better than expected results and improved market sentiment across the globe provided support to the market to maintain the strength.
Global markets continued to remain strong on better economic recovery prospects and better than expected earnings by top companies across the globe. Negative news has been unable to put any downward pressure on the markets on a sustainable basis. Short coverings have been emerging at almost every fall and this is boosting the sentiment of the market participants further. Last week, major global indices breached some important levels and more importantly in India the Sensex and Nifty also crossed their recent highs on a closing basis. This should boost the market sentiment further in the coming week. Overall, the undertone seems to be positive for the market and the rally is likely to continue in the coming week too.