By VK Sharma
The Nifty rose on each of the trading sessions to gain 4.26% last week. This was its best weekly performance since February 2021. Daily volumes on Friday were the highest since November 24, 2024.
The Midcap 100 gained 7.74%, its best weekly performance since April 2020, while the SmallCaps 100 soared 8.64%, its strongest weekly show since June 2020.
The main trigger for market gains was the upward trajectory of the rupee. The rupee gained for the eighth straight day. It appreciated by 40 paise to 85.97 against the US dollar on Friday, a two-and-a-half-month high. Another reason for gains was the fear of missing out in terms of catching the bottom.
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Last fortnight, we had just asked a question to ourselves – is the tide turning? And here we are, breaking through the trendline on weekly charts.
Please have a look at the accompanying weekly candle-stock chart. The trendline number 52, which has been drawn by joining the all-time high mark of 26,277 seen during the week ended September 27,2024 and 24,781 registered in the week ended December 20, 2024, was breached last week and the Nifty closed at 23,350 after touching 23,402.
Now, note that this trendline is sloping downwards. So, even if the Nifty slides to 23,180, it will still remain above the trendline. That does not mean that the Nifty cannot go any lower to fill various gaps left behind in its upward journey. But as long as the Nifty closes above the 23,180 mark, it should be considered healthy and the trend intact on weekly charts.
Major resistance on the way up comes in the region of 23,800.
Meanwhile, the US markets managed to claw back into the green by close on Friday after being down by more than 1% in early morning trade. The rebound came as Trump provided hope that previously announced tariffs expected to begin in early April may not be as burdensome as feared.
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For the week, the S&P 500 gained 0.5% and the Nasdaq edged up 0.17%.
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