Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic stock markets are entering the new trading week on the back of massive gains registered last week when bulls asserted dominance. S&P BSE Sensex rose 4.3% last week to settle at 56,072 while the NSE Nifty 50 rallied 4.18% to end at 16,719 points. Bulls are propelled by returning foreign institutional investors. Ahead of Monday’s trade, SGX Nifty was down in the red, suggesting a flat to negative start to the day’s trade on Dalal Street. Global cues were largely weak after Wall Street closed in the red on Friday. Major Asian stock markets were trading with losses during the early hours of trade.

Sensex and Nifty have climbed higher repeatedly in the last week but, now, entering the monthly futures & options expiry week volatility could be on the cards. Further, the US Fed’s FOMC will once again attempt to tame inflation and the ongoing results season will keep investors on the edge of their seats. “The forthcoming week will be action-packed with activities. The FOMC meeting and press conference will take centre stage. While the rate hike is anticipated to be aggressive, market participants will attempt to interpret between the lines to assess the economy’s route,” said Apurva Sheth, Head of Market Perspectives, Samco Securities. So far bulls have been aided by the returning Foreign fund flows. FIIs have pumped in Rs 1,100 crore into domestic stocks so far this month. However, it will be interesting to see if FIIs will continue to buy as the US Fed meeting approaches. 

Buy these two stocks for gains as Nifty charts its way towards next resistance in 16700-16800 range

Last week was a super bullish week for the Indian bourses where the Nifty 50 index rallied more than 500 points gaining close to 5 % to close above 16650 levels. After 14 weeks the benchmark index has closed above its 21 & 50–week exponential moving average on the weekly chart and this can be a sign of an intermediate bottom for the index.  Prices have witnessed two gap-up openings and both the gaps are unfilled creating strong support for the index. Currently, the benchmark index is closed above its 21, 50 & 100–day exponential moving average and the closest average support is 100 DEMA which is placed at 16440 levels. 

Markets have recovered over 10% from the bottom in the last five weeks and now we are inching closer to the major hurdle of previous swing high i.e. 16,800  in Nifty. A decisive break above that mark would keep the momentum going and help the index to test 17,400. In case of any consolidation, 16,250-16,500 zone would act as a support. The banking index has also reached at the trendline hurdle around 36,900 zone and its break could further propel the momentum. Indications are in the favour the prevailing bias to continue with some intermediate pause and it would be healthy. Though all the sectors are contributing to the move now,  the preference should be given to top performers like auto, FMCG, banking and financials and look selectively to others. Amid the recent buoyancy, traders should maintain their focus on managing overnight risk and stock-specific volatility, which may remain high due to earnings and derivatives expiry.