The Indian equity market snapped a 3-day winning streak and ended lower in yet another volatile session on May 24. At close, the Sensex was down 208.01 points or 0.34% at 61,773.78, while the Nifty was down 62.60 points or 0.34% at 18,285.40.
On the back of weak global markets, Indian indices started the day on a negative note, but soon recovered and witnessed rangebound movement in the first half. However, second half selling pressure dragged the benchmark to the day's low.
Stocks and Sectors
Adani Enterprises, Adani Ports, Tata Motors, HDFC Bank, and ICICI Bank were among the biggest losers on the Nifty. However, gainers included Sun Pharma, Dr Reddy's Laboratories, ITC, IndusInd Bank, and Hero MotoCorp.
Among sectors, metal index shed 1 percent, Bank down 0.5 percent, while pharma index added 1 percent and power index up 0.6 percent.
The BSE midcap and smallcap indices ended on a flat note.
A short build-up was seen in Cummins India, Adani Enterprises, and India Cements, while a long build-up was seen in Deepak Nitrite, Dixon Technologies and Laurus Lab.
Among individual stocks, a volume spike of more than 200 percent was seen in Manappuram Finance, L&T Finance Holdings and Biocon.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 61,773.78 | -208.01 | -0.34% | |
| Nifty 50 | 18,285.40 | -62.60 | -0.34% |
| Nifty Bank | 43,677.85 | -276.60 | -0.63% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Sun Pharma | 952.15 | 20.55 | +2.21% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| 2,475.60 | -158.10 | -6.00% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Pharma | 12440.50 | 126.30 | +1.03% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5855.15 | -92.55 | -1.56% |
L&T Finance Holdings, Cummins India, Ceat, CG Power, Jindal Saw, Apollo Tyres, TVS Motor Company, Elecon Engineering are among the stock that touched their 52-week high on the BSE.
Outlook for May 25
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty opened on a weak note and witnessed volatile price action during the day. The Nifty ultimately closed in the red down ~60 points for the day. On the daily charts, we can observe that the Nifty has been trading in the range of 18400 – 18000 for the past couple of weeks. The pullback that it witnessed after taking support at the 20-day moving average fizzled out around the 18400 mark because the momentum indicator still has a negative crossover. Thus, price and momentum indicators are currently not in sync with each other which can lead to a consolidation in the near term.
Overall, we still believe that the Nifty is in a consolidation mode and the range of consolidation is likely to be 18000 – 18400. In terms of levels, 18420 – 18450 shall act as the immediate hurdle while 18200 – 18150 is the crucial support zone to watch out for on the downside.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities:
The Nifty index has been firmly held by bears, indicating their strong control over the market. The index is currently facing significant resistance at the level of 18400, which has proven to be a challenging barrier to overcome. The ongoing battle between bulls and bears has resulted in the index trading within a consolidated range between 18200 and 18400 levels.
However, a break above or below this range has the potential to trigger trending directional moves in the market. Traders and investors should closely monitor the index for a potential breakout or breakdown, as it may indicate a shift in market sentiment and the beginning of a new trend.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Weakness in global markets dragged domestic indices down as the overhang of US debt ceiling negotiation influenced sentiments. Nifty opened lower and witnessed selling pressure throughout the session to close with a loss of 63 points at 18285 levels. Broader markets were mixed with Midcap 100 up 0.2% while small-cap 100 ended flat to negative. Most sectors ended in green with Pharma and Consumer Durables up 1% each.
Domestic markets have taken pause with Nifty facing minor resistance at a higher level of 18400-450 zones. However, the overall positive structure remains intact, with a view of buy on dips. Globally, Investors would also take direction from the Fed meeting minutes to be released later today.
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