The Indian benchmark indices ended with a minor gain in the volatile session on May 23 with the Sensex rising 18.11 points or 0.03 percent to close at 61,981.79, and the Nifty adding 33.60 points or 0.18 percent to end at 18,348.
After a positive start, the benchmark indices extended the gains as the day progressed. However, last-hour selling erased all the intraday gains although indices managed to close in the green patch.
"During the day, the Nifty index exhibited a predominantly sideways movement, hovering around the 18,400 level. Despite the lack of significant fluctuations, market sentiment remained optimistic as the Nifty managed to sustain its position above the support level of 18,300. However, a notable resistance was observed at 18,500. If the Nifty manages to break through this resistance decisively, it could potentially trigger a rally towards the 18,800 level," said Rupak De, Senior Technical Analyst at LKP Securities.
Stocks and Sectors
Top gainers on the Nifty included Adani Enterprises, Divis Laboratories, Eicher Motors, Bajaj Finserv and UPL, while losers were Apollo Hospitals, Tech Mahindra, Grasim Industries, HCL Technologies and Titan Company.
On the sectoral front, the metal index was up 2.6 percent and the power index was up 1 percent, while buying was also seen in oil & gas, auto, FMCG and healthcare. Some selling was seen in the capital goods, information technology and realty names.
The BSE midcap and smallcap indices ended with marginal gains.
Among individual stocks, a volume spike of more than 3500 percent was seen in Delta Corp, GNFC and Aditya Birla Fashion & Retail.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 61,981.79 | 18.11 | +0.03% |
| Nifty 50 | 18,348.00 | 33.60 | +0.18% |
| Nifty Bank | 43,954.45 | 69.35 | +0.16% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Adani Enterpris | 2,633.70 | 307.60 | +13.22% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Tech Mahindra | 1,090.50 | -13.95 | -1.26% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5947.70 | 150.20 | +2.59% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28873.70 | -133.60 | -0.46% |
More than 100 stock touched their 52-week high on the BSE, including Ceat, ADF Foods, ABB India, Jyoti, Cholamandalam Investment and Finance Company, IOC, Poonawalla Fincorp and Usha Martin.
On the other hand, Aditya Birla Fashion and Retail, ARSS Infrastructure Projects, Balaji Amines, Gayatri Projects, Gland Pharma, HDIL, Ipca Laboratories, Jet Airways, Punjab Chemicals, Rolta, Spicejet and Vivimed Labs touched their 52-week low.
Outlook for May 24
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The benchmark indices observed profit-taking at higher levels; the Nifty concluded the day up 34 points. While some IT stocks saw profit booking at higher levels, the Metal index continued to outperform all other sectors and increased by nearly 2.5 percent. Today's market took the barrier near 18,420 after a gap-up opening, and in the second half due to intraday profit booking it swiftly corrected. But the short-term pattern is still on the optimistic side.
Technically, the index has produced a Hammer candlestick reversal configuration on the daily charts, which suggests a high likelihood of transient weakness. We think that since the short-term market structure is non-directional, level-based trading is the best approach for day traders.
Currently, 18,300 would serve as a key support level for traders. Above that point, the sentiment will probably stay favourable and the index may rise as high as 18,450–18,500. On the other hand, selling pressure is likely to increase below 18,300. The Nifty could decline until 18,200–18,175 below the same.
Deepak Jasani, Head of Retail Research, HDFC Securities
The Nifty gave up the early gains in a sell-off post 1400 hrs on May 23 and ended marginally higher. At close, the Nifty was up 0.18 percent or 33.6 points at 18,348.
Volumes on the NSE were higher than the recent average. The midcap index rose more than the Nifty even as the advance-decline ratio remained above par at 1.12:1.
Global markets retreated on May 23 as concerns about the US debt limit standoff spread across the globe post a Monday meet which did not show much progress.
The Nifty formed a high wave candle on May 23 after a rise in the previous session. It keeps facing resistance from 18,400+ levels. It could continue to face resistance from the 18,432-18,458 band, while 18,218-18,297 band could offer support.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty opened on a positive note. However, during the second half of the session, it gave up most of the gains and closed well off the intraday highs. On the upside, the upper boundary (18,400) of the broad trading range 18,000 – 18,400 acted as a stiff resistance and the Nifty was unable to surpass the resistance. One reason could be that the daily and hourly momentum indicator still has a negative crossover and is still away from the equilibrium line indicating that there could be further consolidation over the next few trading sessions.
Considering that the Nifty is around the upper boundary we can expect some weakness in the near term as the Nifty shall retest its supports. Overall, we still believe that the Nifty is in a consolidation mode and the range of consolidation is likely to be 18,000 – 18,400. In terms of levels, 18,420–18,450 shall act as the immediate hurdle while 18,170 – 18,150 is the crucial support zone to watch out for on the downside.
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