The key benchmark indices declined at the end of volatile trading on May 23. Both the indices gave up intraday gains to close lower. Bank Nifty nosedived 0.08 percent. The metal index crashed 8 percent followed by Nifty commodity and Nifty PSE 2 percent each. The BSE midcap and smallcap indices ended in the red. Among sectors Nifty AUTO and Nifty IT gained 1.84 and 1 percent respectively.
INDIA VIX settled at 23.40 indicates volatility can drive either side till monthly expiry. Investors awaited the last leg of financial results for a clear trend as well
At close, the Sensex was down 37.78 points or 0.07 percent at 54,288.61, and the Nifty was down 51.50 points or 0.32 percent at 16,214.70. About 1,390 shares have advanced, 1,932 shares declined, and 158 shares are unchanged.
Of the Sensex firms, Tata Steel tumbled the most by 12.53 percent, followed by UltraTech Cement, ITC, Power Grid, HDFC, HDFC Bank, HCL Technologies, and Reliance Industries. In contrast, M&M, Maruti, Hindustan Unilever, Larsen & Toubro, Asian Paints, and Kotak Mahindra Bank were among the gainers.
Among top Nifty gainers were M&M, Maruti Suzuki, HUL, Asian Paints and Larsen and Toubro. JSW Steel, Tata Steel, Divis Labs, ONGC and Hindalco Industries were among the major laggards.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "After a firm start, markets failed to hold on to their early upsurge and simply lost track to end marginally lower. Metal stocks bore the brunt while automobile, realty, and oil & gas stocks also came under selling pressure, thus dragging key indices lower. Technically, on intraday charts, the Nifty has formed a double top formation and on daily charts it has formed Hammer candlestick formation which is broadly negative. For day traders 16,200 would act as a crucial support level, and below the same we could see a quick intraday correction till 16,100-16,050. On the flip side, fresh uptrend is possible only after 16,300 intraday breakout. On breaching the level, the index could move up to 16,400-16,475."
Om Mehra, Research Associate, Choice Broking siad, Technically, Nifty has formed a bearish candlestick on the daily timeframe. Bulls remain in trap as from the past week no continuous day index is closed in green. From the hourly chart, Nifty has formed a triple top pattern suggesting weakness amid coming days, however view negated closing and sustaining above 16,400 levels. Indicators such as RSI still remained in the oversold zone while MACD also suggests weakness ahead. Till now or in the month of May FII have sold almost 44,102 crore while DII have bought 36,208 crore. The Nifty may find support around 16,000 levels followed by 15850 while on the upside 16,500 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33,500 , while resistance is placed at 35,200 levels, Mehra added.
Mohit Nigam, Head - PMS, Hem Securities said, the benchmark indices ended on a neutral note as Nifty50 erased all its gains and closed in red with loss of 0.32 percent. Weakness in select Metal and Basic Materials shares dragged key gauges lower, while buying in Auto and Consumer Durables stocks helped markets to trade near neutral lines.
Indian Steel Association (ISA) has said that the imposition of export duties on steel products will send a negative signal to investors and adversely impact capacity expansion projects under the PLI scheme. The body further said, steel industry in India has made the largest investment commitments ranging from 36 percent to 40 percent of total investments committed by the entire manufacturing sector. It also said these investments in capacity building are needed to achieve the Atmanirbhar Bharat Vision.
On the technical front, the key resistance levels for Nifty50 are 16,500 and on the downside 16,000 can act as strong support. Key resistance and support levels for Bank Nifty are 34,800 and 33,500 respectively, Nigam added.
Asian markets trade high
Asian markets in Shanghai, Seoul, and Tokyo ended higher while Hong Kong settled lower.
European markets were trading higher as traders attempted to call an end to a downturn in global stocks driven by surging inflation and fears of major economies falling into recession.
Stock markets in the US had ended on a mixed note on Friday.
International oil benchmark Brent crude gained 1.15 percent to $118.3 per barrel.
Foreign institutional investors offloaded shares worth Rs 1,265.41 crore on Friday, as per stock exchange data.
(With inputs from Agencies)