The stock market indices closed higher at the end of the session on May 27. Sensex, Nifty surge over 1 percent, as strong global cues bolster market sentiment.
Nifty continued to trade upside for the second day and closed with a gain of 182.30 points. As the Nifty opened on a gap-up note and covered the gap it made an intraday low at 16,221.95 levels but bounced from there and closed on green note. However, Bank Nifty closed the session with a gain of 518.40 points.
Except oil and gas and metals, all other sectoral indices ended in the green with the midcap and small cap indices up 1 percent each. Stocks like Apollo Hospitals, HDFC Life, Tech Mahindra, Wipro, Hero Moto Co were the top gainers. While ONGC, NTPC, Bharti Airtel, Power Grid, and Tata Steel were the top losers.
At close, the Sensex was up 632.13 points or 1.17 percent at 54,884.66. Nifty was up 182.30 points or 1.13 percent at 16,352.50. About 2,152 shares have advanced, 1,099 shares declined, and 119 shares are unchanged.
Eight of the 30 Sensex scrips were trading in the red. NTPC slumped 1.59 per cent to Rs 151.75. Asian Paints dipped 1.18 per cent to Rs 2811. Tata Steel was down 1.02 per cent to Rs 1041.15. Power Grid Corporation, Bharti Airtel and Reliance Industries were among the other major Sensex losers.
Palak Kothari, Research Associate, Choice Broking said, the Nifty has confirmed the Hammer candlestick pattern on daily time frame which indicates bullish momentum in the index. Nifty has been trading in Ascending Triangle Formation, crossing above the upper band of formation can show northward journey in the counter. Moreover, the Nifty has been trading a range of 15,740-16,410 levels and closed near to the resistance levels, crossing above the same can show fresh buying in the counter. In addition, Nifty has given closing above 21-Hourly Moving Average which indicates an upside moment in the counter. However, the momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone on a daily chart which suggest a northward journey in the counter. The Nifty may find Strong support around 15900 levels, while on the upside 16,410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 34,800 levels while resistance at 36,000 levels, Kothari added.
Mohit Nigam, Head - PMS, Hem Securities, said, Benchmark indices ended the day’s session on a positive note, with Sensex and Nifty 50 ended a session with gains, surged by IT, Auto and Media stocks and it was a volatile week in which the markets logged losses for the first three days before erasing them in the last two sessions. Indian shares rose on Friday, joining a global rally that has been driven by strong retail earnings outlooks in the United States and waning concerns about overly aggressive rate hikes.
Gains were seen across the board, with all major Nifty sub-indexes trading in positive territory. Nifty 50 closes its day at above good resistance zone of 16,300 and if index holds above this mark for coming trading sessions then we may see more upward move towards 16,500-16,700 mark which are another resistance zone on the upside. India VIX declines 2nd week in a row to post worst week since 3rd April. In the 50-share pack, Apollo Hospital was the biggest gainer, up 5.43 percent. ONGC was the top loser in the pack, down by 5.33 percent. Tech Mahindra, HDFC Life and Hero Motocorp were other top gainers in the Nifty 50 pack. Crucial support for Nifty 50 is 16,000 while Nifty may face some resistance at 16,500.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, Nifty joined the conga-line of rising worldwide stock markets on backdrop of theme of a not-that-aggressive Federal Reserve. Nifty IT index was star outperformer, rebounding from its oversold conditions, up 2.71 percent followed by Bank Nifty which again was seen outperforming, up 1.50 percent for the day. Technically, Bank Nifty is aiming to move towards its biggest hurdles at 36,657 mark. The positive takeaway from today’s trade is that the benchmark Nifty has room to run further— all conditions are ripe for a value rally. Helping sentiments are reports of a not-that-aggressive Federal Reserve. If this is believed to be true then Nifty could reclaim its psychological 17,000-mark with an intermonth perspective time frame.
Stock markets this week
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd. said, In this week, the Nifty ends 92 points higher while the Sensex was up by 558 points.
Among sectors, strong buying interest was seen in Banking and financial stocks, as a result the Bank Nifty index rallied over 3.85 percent. Whereas Metal index corrected sharply, trimmed over 9 percent.
Technically, after a short term correction the index took the support near 15,900/53,500 and bounce back sharply. it also formed higher bottom formation on daily charts which is broadly positive for the short term. in addition, after a long time it succeed to close above 20 day SMA.
Athawale said, we are of the view that, the short term texture of the market has changed to positive from negative for the trend following traders now, 16,200/54,450 would be the key level to watch out. Above which, it could touch the level of 16,500-16,650 /55,300-55,500. On the flip side, below 16,200/54,450 uptrends would be vulnerable. Below the same, the index could retest the level of 16,000/53,900. Further down side may also continue which could drag the index up to 15,900-15,850/53,600-53,500.
Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities, said, Bears tightened their grip in the month of May, while gold has been recovering from a corrective phase. The Indian equity market (Nifty-50 Index) gained 0.3 percent as investors hoped that global inflation will weaken over the coming months and improve the chances of a ‘soft landing’. Meanwhile, the Indian government unveiled a number of measures to control inflation such as (1) reduction in excise duties for auto fuels, (2) increasing export duty for steel and (3) allowing duty free imports of 2 mn tons of edible oil. Banks and automobiles out-performed, while metals, IT services and oil & gas under-performed.
Equity markets focused on evolving growth-inflation dynamics, ongoing 4QFY22 earnings prints and volatile global commodity prices. Markets continued to price in the probability of aggressive rate hikes by the US Fed. The Sensex was at 54,753 on May 27, 2022 ending with gain of 0.8 percent during the week, while the Nifty was at 16319 on 27th May 2022 reporting gain of 0.33 percent during the week. Midcap and Smallcap Index underperformed during the week gaining 0.28 percent and losing 1.1 percent respectively. Most of the sectoral Indices ended in red except for Bank Nifty and BSE Auto. On the economy front, RBI Governor Shaktikanta Das said that the Monetary Policy Committee will increase interest rates to contain inflation, but the objective is to ensure that the market doesn't get any shocks and that growth revival is not derailed.
This week Thursday marked the end of the World Economic Forum, where business leaders, financiers and politicians offered some ominous predictions for the European economy. Russia’s Defense Ministry claimed overnight that it will allow foreign ships to leave ports on the Black Sea and Sea of Azov. Meanwhile, China held a rare nationwide meeting via teleconference Wednesday to bolster an economy battered by COVID.
Global shares' rise broadly cheered by US earnings, rally
Global shares gained Friday as investors cheered a strong set of earnings from retailers that have sent the US shares higher. European shares rose in early trading, while benchmarks in Asia finished higher, including Japan, China, Australia, and South Korea.
France's CAC 40 added 0.8 percent in early trading to 6,460.20. Germany's DAX rose 0.6 percent to 14,319.07. Britain's FTSE 100 was little changed but slightly higher, at 7,567.34. US shares were set to drift higher with Dow futures up nearly 0.1 percent at 32,626.00. S&P 500 futures gained 0.2 percent at 4,065.50.
Rupee inches 2 paise higher to 77.59 against US dollar
The rupee inched 2 paise higher to close at 77.59 (provisional) against US dollar on Friday, supported by positive domestic equities and weakness of the American currency overseas.
Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices, fiscal deficit concerns, and persistent FII outflows weighed on the local unit.
At the interbank forex market, the rupee opened at 77.60 against the greenback and moved in a range of 77.57 to 77.67 in the day's trade. The rupee finally ended at 77.59, higher by 2 paise over its previous close of 77.61
(With inputs from Reuters, Agencies)