Nifty rides the wave: Is the tide turning?

THE NIFTY ended the week up 426 points, or 1.93%, at 22,552, marking its first weekly gain after three consecutive losses and the highest percentage gain since the week of December 6.

- V.K. Sharma

THE NIFTY ended the week up 426 points, or 1.93%, at 22,552, marking its first weekly gain after three consecutive losses and the highest percentage gain since the week of December 6. The NSE SmallCap Index surged 5.47%, while the Nifty MicroCap Index jumped 6.71%.

Two key highlights of last week's trade were the overwhelmingly positive market breadth over the last three days and the Nifty closing above the five-day exponential moving average (5 DEMA) on March 5. The last time the Nifty closed above the 5 DEMA was on February 6, 2025. The last week's rally has come on lower volumes. This is understandable as after weeks of fall, investors do not have the confidence to buy, especially if they have not sold at higher levels.