Logging their worst week in nearly two years, Sensex fell around 5.19 per cent, whereas Nifty50 dropped 5.36 per cent in the last five sessions.
“It was a devastating week for the bulls on the D-Street wherein the domestic markets suffered severe loss amid the global cues. The week started off with a downside gap for the Nifty spot, and it remained under pressure throughout the week,” said Mehul Kothari – AVP, Technical Research, Anand Rathi Shares & Stock Brokers.
He said that the selloff aggravated after the US Fed announced a rate hike of 0.75 bps. As a result, Nifty not only breached the low of 15,670 decisively but also sneaked below 15,200 mark. Eventually, the index lost around 1,000 points during the week and ended with a cut of over 5.5%.
On the other hand, the Nifty Bank index outperformed by cracking just around 5% and is showing relative strength since the low of 32,000 is still not broken. For the coming week, 32,000 would be crucial support for the index. A daily close below the same might bring in further pessimism and will open doors for 31,000/ 30,500 levels. A sustainable move above 33,000 would reinforce the bulls to display a sharp pullback rally in the markets,” Kothari added.
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