• Sensex and Nifty closed 364 points and 107 points higher in Friday’s session.
• Real estate stocks were the top gainers in the session with Nifty Realty gaining 3%.
• Experts see the positive momentum continuing, with Q2 earnings taking over next week.

Indian benchmark indices closed 0.5% higher on Friday, after receiving a sentimental boost from the central bank. The Reserve Bank of India’s (RBI) rate setting panel decided to keep its key policy rates unchanged in its October meeting.

Even as the pause was much expected by the markets, Sensex and Nifty gained 364 points and 107 points respectively. Most Nifty indices closed in the green with the exception of Nifty Media. But the best performers of the session were the usual suspects – real estate stocks.

Nifty Realty rose by 3%, with eight of its constituents closing in the green. DLF, Godrej Properties and Lodha Developers gained 4% during the session.

“Realty shares hogged the limelight after taking the hammering in recent trades amid hopes that no change in interest rates may boost home sales, especially during the festive season,” said Amol Athawale, VP of technical research at Kotak Securities.

The Asian market performance too added to the euphoria in the markets. US equities however were weighed down this week as the 10-year US Treasury yield hit a 16-year high this week. Experts also believe that Nifty could hold on to these levels going forward and will be guided by the earnings season which starts next week.

Positive sentiment to continue

Nifty took support near 19,350 and bounced back sharply in the last two trading sessions. Nifty recouped all of the losses seen earlier this week on the back of firm global cues. Sentiments got a lift after US Treasury yields retreated and as oil prices plummeted, said Prashanth Tapse, Senior VP (Research), Mehta Equities.

“Currently, the index is trading near the 50-day SMA (Simple Moving Average), and on weekly charts it has formed a Hammer kind of formation which is largely positive. As long as the index is trading above the 50-day SMA or 19575 level the positive sentiment is likely to continue,” added Athawale.

The Nifty Bank index fell by 0.5% this week due to sell-offs in banking stocks. It however gained during Friday’s session.

“Overall, sentiment is expected to stay positive as long as it maintains above the critical support level of 19,500, as put writers are likely to offer support at this level,” said Rupak De, senior technical analyst at LKP Securities.

Bajaj Finserv, Bajaj Finance, Titan, IndusInd Bank and Tata Consumer were the top gainers in the Nifty50 pack. Hindustan Unilever, Coal India, ONGC, Asian Paints and Bharti Airtel were top losers.