Sensex jumps 632 points, Nifty above 16,350

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With the exception of oil, gas and metals, all other sector indices ended in the green with mid and small cap indices up 1% each / Representative Image |

Stock indices closed higher at the end of the May 27 session. Sensex, Nifty jumped more than 1% as strong global indices bolster market sentiment.

Nifty continued to trade higher for the second day and closed with a gain of 182.30 points. As the Nifty opened on a gap note and covered the gap, it hit an intraday low at 16,221.95 levels, but bounced from there and closed on a green note. However, Bank Nifty closed the session with a gain of 518.40 points.

With the exception of oil & gas and metals, all other sector indices ended in the green with mid and small cap indices up 1% each. Stocks like Apollo Hospitals, HDFC Life, Tech Mahindra, Wipro, Hero Moto Co were the main gainers. While ONGC, NTPC, Bharti Airtel, Power Grid and Tata Steel were the big losers.

At the close, the Sensex was up 632.13 points or 1.17% at 54,884.66. Nifty rose 182.30 points or 1.13% to 16,352.50. About 2,152 stocks were up, 1,099 stocks were down and 119 stocks were unchanged.

Eight of the 30 Sensex scrips were trading in the red. NTPC fell 1.59% to Rs 151.75. Asian Paints fell 1.18% to Rs 2,811. Tata Steel was down 1.02% to Rs 1,041.15. Power Grid Corporation, Bharti Airtel and Reliance Industries were among Sensex’s other big losers.

Palak Kothari, Research Associate, Choice Broking, said the Nifty confirmed the Hammer candlestick pattern on the daily time frame, indicating bullish momentum for the index. Nifty traded in the ascending triangle formation, crossing above the upper band of the formation may show a northward trip in the meter. Additionally, the Nifty traded within a range of 15,740-16,410 levels and closed near resistance levels, crossing above the same may show further counter buying. Additionally, Nifty closed above the 21-hour moving average, indicating a bullish moment in the meter. However, the MACD & Stochastic momentum indicators were trading with a positive and inverted crossover from the oversold zone on a daily chart that suggests a northward trip in the meter. The Nifty may find strong support around the 15900 levels, while on the upside 16,410 may act as an immediate obstacle. 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: Benchmarks ended the day’s session on a positive note as Sensex and Nifty 50 ended a session with gains, boosted by IT stocks, automotive and media and it was a volatile week in which markets posted losses for the first three days before erasing them in the last two sessions. Indian stocks rose on Friday, joining a global rally that was fueled by a strong outlook for U.S. retail earnings and diminished concerns about overly aggressive rate hikes.

Gains were seen across the board, with all major Nifty sub-indices trading in positive territory. Nifty 50 closes the day above the good resistance area of ​​16,300 and if the index holds above this mark for the next few trading sessions, we could see an upward move towards 16,500-16 700, which is another resistance area on the upside. India’s VIX drops for the second week in a row to post the worst week since April 3. In the 50-stock pack, Apollo Hospital was the biggest gainer, up 5.43%. ONGC was the big loser of the pack, down 5.33%. Tech Mahindra, HDFC Life and Hero Motocorp were the other top gainers in the Nifty 50 pack. Crucial support for Nifty 50 is at 16,000 while Nifty may face some resistance at 16,500.

Prashanth Tapse, Vice President (Research) of Mehta Equities Ltd, said: “Nifty has joined the conga of rising global equity markets on a not-so-aggressive Federal Reserve theme. The Nifty IT index was the best performer, rebounding from oversold conditions, up 2.71%, followed by Bank Nifty which was again outperformer, up 1.50% for the day. Technically, Bank Nifty is aiming to hit its biggest hurdles at 36,657 points. The positive conclusion from today’s trade is that the benchmark Nifty has room to run further – all the conditions are in place for a rally in value. Help sentiments are reports from a not-so-aggressive Federal Reserve. If this is considered true, then Nifty could reclaim its 17,000 psych mark with an inter-month perspective delay.

Scholarships this week

Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities Ltd., said: This week, the Nifty finished 92 points higher while the Sensex was up 558 points.

Across sectors, strong buying interest was seen in banking and financials stocks, as a result of which the Bank Nifty Index rose more than 3.85%. While the metals index corrected sharply, it fell by more than 9%.

Technically, after a short-term correction, the index took support near 15,900/53,500 and rebounded strongly. it also formed a higher bottom formation on the daily charts, which is overall positive in the short term. furthermore, after a long stretch, it manages to close above the 20-day SMA.

Athawale said our view is that, the short-term texture of the market has turned from negative to positive for the trend following traders now, 16,200/54,450 would be the key level to watch. Above that, it could touch the 16,500-16,650/55,300-55,500 level. On the other hand, below 16,200/54,450, uptrends would be vulnerable. Below, the index could retest the 16,000/53,900 level. The decline could also continue, which could take the index down to 15,900-15,850/53,600-53,500.

Shrikant Chouhan, Head – Equity Research (Retail), Kotak Securities, said: Bears tightened their grip in May as gold recovered from a correction phase. India’s stock market (Nifty-50 index) gained 0.3% as investors hoped global inflation would weaken over the coming months and improve the chances of a ‘soft landing’. Meanwhile, the Indian government has unveiled a number of measures to control inflation such as (1) reduction of excise duties on motor fuels, (2) increase of export duties on steel and (3) the authorization of duty-free imports of 2 million tons of edible oil. Banks and autos outperformed, while metals, IT services and oil & gas underperformed.

Equity markets focused on changing growth and inflation momentum, ongoing 4Q22 earnings releases and global commodity price volatility. Markets continued to price in the likelihood of aggressive rate hikes by the US Fed. The Sensex was at 54,753 on May 27, 2022, ending with a gain of 0.8% over the week, while the Nifty was at 16,319 on May 27, 2022, reporting a gain of 0.33% over the course of the week. of the week. Midcap and Smallcap Index underperformed during the week, gaining 0.28% and losing 1.1% respectively. Most of the sector indices finished in the red except for Bank Nifty and BSE Auto. On the economic front, RBI Governor Shaktikanta Das said the monetary policy committee will raise interest rates to contain inflation but the aim is to ensure that the market does not suffer any shocks. and that the resumption of growth does not derail.

This week, Thursday marked the end of the World Economic Forum, where business leaders, financiers and politicians made ominous predictions for Europe’s economy. The Russian Defense Ministry said overnight that it would allow foreign ships to leave Black Sea and Sea of ​​Azov ports. Meanwhile, China held a rare national meeting via teleconference on Wednesday to support a COVID-battered economy.

Rise in global equities largely buoyed by US earnings and rally

Global stocks gained on Friday as investors cheered a strong set of retail earnings that lifted U.S. stocks. European stocks rose in early trading, while benchmarks in Asia ended higher, including Japan, China, Australia and South Korea.

The French CAC 40 added 0.8% in early trading to 6,460.20. The German DAX rose 0.6% to 14,319.07. Britain’s FTSE 100 was little changed but rose slightly, to 7,567.34. US stocks were expected to drift higher with Dow futures up nearly 0.1% at 32,626.00. S&P 500 futures gained 0.2% to 4,065.50.

The rupee gains 2 paises to 77.59 against the US dollar

The rupiah edged up 2 pounds to close at 77.59 (provisional) against the US dollar on Friday, buoyed by positive domestic stocks and US currency weakness overseas.

Traders said the rupiah consolidated in a narrow range as high crude oil prices, fiscal deficit concerns and persistent FII outflows weighed on the local unit.

In the interbank forex market, the rupiah opened at 77.60 against the greenback and moved into a range of 77.57-77.67 in the day’s trade. The Rupee eventually finished at 77.59, up 2 paise from its previous close of 77.61.

(With contributions from Reuters, agencies)

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