The stock market indices closed marginally higher on Friday's trading session, with the S&P BSE Sensex ending 71.75 points higher at 73,961.31, and the NSE Nifty50 rising 42.05 points to settle at 22,530.70. However, the day saw significant volatility, reflecting investor caution ahead of the Lok Sabha elections outcome next week.
Despite registering decent gains during intraday trade, the benchmark indices experienced wild swings due to rising volatility. The broader market indices, focusing on domestic sectors, ended the session positively.
While the Nifty Bank and Nifty Financial Services saw gains, a sharp decline in Nifty IT erased some of the gains.
Among the top gainers on the Nifty50 were Adani Enterprises, Adani Ports, Shriram Finance, Coal India, and Tata Steel. Conversely, the top losers included Divi’s Laboratories, Nestle India, LTIM, Dr. Reddy’s, and Maruti.
Investor attention remains on the Q4 GDP data release, scheduled for 5:30 pm. Economists anticipate better-than-expected growth in Q4 GDP, according to a Reuters survey.
Additionally, the outcome of the Lok Sabha elections next week is expected to significantly impact market sentiment. Most brokerage firms and analysts anticipate a strong rally in the event of a big win for the BJP-led NDA. However, a shock outcome could trigger a substantial correction of 15-20%.
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, noted the Nifty's rollercoaster ride during the day, ending on a positive note. He highlighted technical indicators, such as the homing pigeon candlestick pattern, and identified short-term support levels around 22,390 and 22,000, with significant barriers at 22,800 and 23,110 in the short term.
