The Indian equity benchmarks rose for second straight week on Friday led by gains in banking, financial services and auto shares. The Sensex rose 1 per cent and Nifty 50 index advanced 0.53 per cent for the week ended May 27, data from stock exchanges showed.
Throughout the week Sensex traded in a narrow range following an uneven move.
On the sectoral front, financial services shares witnessed strong buying interest as the gauge of financial services shares Nifty Financial Services index rose 4.3 per cent. Nifty Private Bank, Bank, Auto and PSU Bank indices also rose between 1-4 per cent.
On the other hand, metal stocks witnessed selling pressure after government increased export duty on iron ore to 50 per cent, Metal index on the National Stock Exchange - Nifty Metal index dropped nearly 9 per cent. Nifty Oil & Gas, Realty, Pharma, Media and Healthcare indices also declined between 2-3 per cent.
"Nifty has formed a bullish candle on the weekly chart with a long tail suggesting strong support around 15,900 levels, while on the upside 16,800 may act as strong resistance. Index has taken support from the previous horizontal line and closed above 21-day simple moving average that indicates further pullback rally in the near term," Sumeet Bagadia, executive director at Choice Broking told Outlook Business.
Bagadia explained that technical indicators like relative strength index (RSI) remained in the neutral zone while moving averages convergence divergence (MACD) suggest some positive cross over observed in daily time frame suggest some sign of reversal.
"Overall, Nifty is having support at 16,000-mark while on the upside 16,500 followed by 16,750 may act as an immediate resistance. While Bank Nifty has support around 34,300 while resistance is placed at 36,800 on weekly chart," Bagadia added.
