Market surged quite 1 percent within the week ended Citizenship Day helped by the positive macro data points and government reforms, which helped indices to hit all-time highs.

Indian benchmark indices, Sensex and Nifty, touched their fresh record high levels of 59,737.32 and 17,792.95 on Citizenship Day , respectively.

However, for the week, BSE Sensex added 710.82 points (1.21 percent) to shut at 59,015.89, while the Nifty50 rose 215.95 points (1.24 percent) to finish at 17,585.2 levels.

The broader indices performed in-line with key indices as BSE Mid, Small and Large-cap indices added over 1 percent each within the week gone .

Among smallcaps, 50 stocks gained 10-41 percent each. These include Thirumalai Chemicals, Surya Roshni, RPSG Ventures, Reliance Infrastructure, BLS International Services, Simplex Infrastructures, Fineotex Chemical, Cosmo Films, Kesoram Industries and Cantabil Retail India.

However, Ajmera Realty and Infra India, Walchandnagar Industries, Liberty Shoes and Soril Infra Resources fell 10-17 percent each.

“The Indian market had a beautiful week adding investor wealth as both the headline indices traded at its record highs though the Bull Run was hindered by profit booking towards the top ,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Positive economic data and government reforms in telecom, banking and automobile sectors helped in boosting market sentiments.”

“The banking sector that did not participate within the recent market movement led this week’s rally thanks to its increased traction,” Nair added.

Also, BSE 500 index added over 1 percent led by the Zee Entertainment Enterprises, Vodafone Idea, IRCTC, Zensar Technologies, Dish TV India, JSW Energy and Interglobe Aviation.

“Markets continued their upward trajectory on expectations of strong medium-term growth and abating inflation risks. Benchmark indices – Sensex 30 and Nifty 50 gained ~1.5%, recording new all-time highs during the week. After witnessing a quick halt last month, BSE Midcap and BSE Smallcap resumed their upward journey,’ said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

“The majority of the sectoral indices remained within the green. BSE Bankex and BSE Auto outperformed the broader markets with gains of ~3% during the week,” he added.

Where is Nifty50 headed?

Samco Research:

Investors across the planet are going to be eyeing the FOMC meeting within the coming week for more clarity on the outlook for both tapering also as rate of interest timelines. While the Fed’s planned reduction of bond purchases has garnered much of the main target this year, their view on interest rates may give new information which will move markets world over.

However, it’s widely assumed that policymakers would take fresh developments in inflation and therefore the intensity of the delta variant under consideration before announcing tapering plans. Therefore, traders are suggested to refrain from taking aggressive bets due to probability of unanticipated whipsaw movements.

Rohit Singre, Senior Technical Analyst at LKP Securities:

Index closed every week at 17586 with gains of quite one-hundredth and formed a bullish candle on the weekly chart.

Any break below 17,530 zone, we may even see more bear down the index, immediate support remains placed at 17,500 followed by 17,430 zone & resistance is approaching 17,650-17,750 zone, also profit booking is usually recommended around mention hurdle zones.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

The markets resisted at the 17750 level and what followed was a knee-jerk reflex reaction. The trend continues to stay positive and intra-day drops or price corrections are often wont to accumulate long positions.