Nifty-50, Sensex scale new peaks

The equity market's benchmark indices, Nifty50 and Sensex, closed at new all-time highs on Friday, marking the fourth successive weekly close with gains. However, the upward momentum seems to be slowing down with relatively lower daily gains for the indices.

The Nifty-50 gained

61.60 points or 39 per cent to close at a new peak of

15,799.35 after touching an intra-day high of 15,835.

The Sensex also closed at a new high of 52,474.76, gaining 174.29 points, and registered a new all-time high of 52,641.53 intra-day.

"The market is rallying on a slowed-down momentum, which can be properly visualised with the help of negative divergence in RSI (Relative Strength Index) in daily timeframe," said Nirali Shah, head of equity research, Samco Securities.

"The traded volume of derivatives saw a sharp decline by 30-40 per cent. The fall in intraday volumes is primarily attributable to either the new peak margin requirements (became effective from June 1) or the drying up of investor conviction at current levels. Overall, the market remained range-bound with an upward bias," Shah said in her weekly analysis.

The broader market outperformed, with Nifty

MId-cap-50 Index up 2.56 per cent and the Nifty Mid-cap 100 Index up 3.28 per cent.

NSE's India VIX Index dropped 13.04 per cent during the week to 14.10, indicating lower volatility ahead.

The market's upward momentum has sustained on the back of Rs 15,520 crore net buying by the foreign portfolio investors (FPIs) in June so far and domestic mutual funds also lending support as shown by the 14month high inflows in equity mutual funds in May 2021.

On Friday domestic institutions were net buyers of equities worth Rs

666.36 crore while the FPIs took a pause with Rs

18.64 crore net purchases. The IT sector emerged a top gainer during the week, with the Nifty IT Index moving up 4.52 per cent while the financials were the laggards, as the Nifty Bank was down 0.69 per cent.