PSBs, IT stocks lift Nifty to record closing of 15,338; Sensex up 98 pts

Stock market updates: Fag-end buying in the public sector banks, IT, and metal counters ahead of the expiry of May derivatives contracts propelled the benchmark Nifty50 index to record closing high on Thursday. From an intra-day low of 15,272, the index leaped 66 points to settle at 15,338. Minutes before closing, the index hit a high of 15,384.5 levels.

The BSE barometer of 30-shares, meanwhile, ended 98 points, or 0.19 per cent, higher at 51,115 levels as losses in HDFC, Bajaj Finance, HUL, and Bharti Airtel were offset by gains in Kotak Bank, Reliance Industries, TCS, Axis Bank, and State Bank of India. The index hit an intra-day high of 51,283.

Overall, Shree Cement, SBI, Bajaj Auto, Kotak Bank, Tech Mahindra, Ultratech Cement, Axis Bank, and Tata Steel were the top large-cap gainers, up between 2 per cent and 4 per cent, while HDFC, Bajaj Finance, ONGC, Bharti Airtel, and Indian Oil Corporation were the top laggards, down up to 2.7 per cent.

The rally in the broader market space continued unabated. The S&P BSE MidCap index added 0.54 per cent while the SmallCap counter gained 0.34 per cent.

Sectorally, the Nifty PSU Bank remained the top performing index on the NSE today, up around 3 per cent. This was followed by the Nifty IT index which grew 1.2 per cent. Earlier in the day, Wipro, Birlasoft, Coforge, Firstsource Solutions, Mindtree, Persistent Systems and Sonata Software hit their respective record highs in the intra-day trade while Tata Consultancy Services (TCS), Tech Mahindra, Infosys, HCL Technologies and Larsen & Tourbo Infotech advanced in the range of 1 per cent to 3 per cent. READ MORE

The Nifty Bank, Private Bank, and Metal indices, too, added between 1 per cent and 1.2 per cent.

On the downside, the Nifty Realty and Pharma indices slipped 1 per cent and 0.2 per cent, respectively.

Global markets

World stocks were pinned down on Thursday as investors awaited US data expected to offer clues on inflation. The Euro STOXX 600 lost 0.2 per cent, with German shares down 0.5 per cent and London's main index making slim losses. France gained 0.1 per cent.

The MSCI world equity index, which tracks shares in 49 countries, was flat. Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan clawed back losses to trade flat at 695.37.

Japan's Nikkei, South Korea's Kospi, and Hong Kong's Hang Seng slipped 0.3 per cent, 0.1 per cent, and 0.2 per cent, respectively.

(With inputs from Reuters)

5:06 PM

MARKET OUTLOOK :: 15,432, the earlier all-time high, is the next resistance for Nifty

Indian benchmark equity indices rose for the fifth consecutive session on May 27 after a mildly volatile day in terms of indices. The Nifty opened lower and made a morning bottom in the first few minutes of trade. Another bout of fall happened post 1335 Hrs. This fall was quickly reversed and the Nifty ended marginally higher. At close, the Nifty was up 36.40 points or 0.24% at 15337.90.

 

Volumes on the NSE were unusually higher than the recent averages due to F&O expiry and MSCI rebalancing trades. Among sectors, Metals, Consumer Durables, Banks and IT indices did well while Realty was the main loser. BSE Midcap and Smallcap indices ended in the green.

 

Nifty continues its gradual march upwards. The high low range of Nifty was less than 100 points and that too on an F&O expiry day. High volumes and lower volatility on the F&O expiry day suggest that the top of this move is yet to happen. 15432, the earlier all time high is the next resistance for the Nifty while 15257 is the support in the near term.

Views by: Deepak Jasani, Head of Retail Research at HDFC Securities

4:57 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

On the technical front, the Index continues to trade in higher high and higher low formation which suggest further upside movement in the counter. Moreover, the index has given closing above 21*50 Hourly Moving Average with a positive crossover which points out strength in the counter. In addition, an indicator MACD & Stochastic witnessed positive crossover, which suggests a bull-run for upcoming sessions. At present, the nifty seems to have resistance at 15450 levels while immediate support is placed at around 15140 levels.

4:43 PM

F&O Expiry :: OI data shows extreme bullishness in the market

NSE gives participant wise OI data and they divide the participants into Clients, FIIs, DIIs and Proprietary books. The Clients which are predominantly directional investors, have a net long Open Interest which is the highest in last 3.5 years. This shows that there is extreme bullish sentiment prevailing in the market. This is also borne out by the spreads prevailing in the market which was upwards of 7% annualized.

Also, FII have been net sellers in the cash market in the last 2 months to the tune of more than INR 210 bn. This selling has been absorbed by retail buying and the market has continued to move higher. Sometimes such extreme bullishness can serve as a contra indicator and signal that the market is peaking out. But until some other indicators also signal a peaking out scenario, we will assume that the current bullish sentiments will continue to take the markets higher.

Many of the stocks are currently trading in overbought zone and we suggest that one follows a stock specific approach while investing. A case in point is the metals index where the stocks were very overbought and there was a sharp correction this month.

Views by:  Deepak Gupta, VP- Derivative Sales at Emkay Global Financial Services

4:27 PM

TECH VIEW :: Breach below 15,275 may drag Nifty towards 15,200

The Nifty index clocked yet another positive session and closed at 15338 with minimal gains of 36 points. It has formed a Doji sort of candle pattern on daily chart and has an immediate support near 15,275 zone. Any break below this level may see more profit booking towards 15,200 zone which is another downside support. The index faces stiff hurdle in 15430-15470 zone.

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities

4:13 PM

Market strategy for Friday

Markets are now eyeing announcements on unlocking by the states which is fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips” with focus on sector and stock selection. 

 

Views by: Ajit Mishra, VP - Research at Religare Broking

3:55 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining Covid cases. However, RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry. RBI has noted a disconnect between the market and economy due to Covid. The equity market is valued based on its future earnings growth proposition, which is solid for India today. High liquidity does help the market and RBI has reaffirmed its supportive stance till the economy recovers.

3:52 PM

BSE Snapshot

3:51 PM

Broader markets:: S&P BSE MidCap and SmallCap indexes outperform benchmarks

3:49 PM

NSE Snapshot:: Top Nifty50 gainers today

3:47 PM

Sensex contributors:: Kotak Mahindra Bank, SBI, and TCS lead Sensex higher

3:41 PM

Sectoral trends on the NSE:: Nifty PSU Bank index rises 2.8%; realty stocks decline

3:38 PM

Sensex Heatmap at close

Top gainers: State Bank of India, UltraTech Cement

Top losers: HDFC, Bajaj Finance

3:36 PM

CLOSING BELL:: Nifty hits record closing high

The benchmark S&P BSE Sensex settled at 51,115, up 98 points from previous day's closing. On the NSE, the Nifty50 ended at record closing high of 15,338, up 36 points.

3:27 PM

Govt, Pfizer working for earliest possible import of vaccine: VK Paul

As soon as Pfizer indicated vaccine availability, the central government and the company started working together for the earliest possible import of the vaccine, NITI Aayog member VK Paul said on Thursday.

 

Paul, in a statement on 'Myth and Facts on India's Vaccination Process' pointed out that vaccines are in limited supply globally, and companies have their own priorities, game-plans and compulsions in allocating finite stocks. READ MORE

3:20 PM

Stocks that hit 52-week high on BSE today in an otherwise volatile market

Company	PRICE(rs)	52 WK HIGH	CHG(%)
ABB Power Produc	1929.20	1949.80	2.56
ACC	2037.10	2039.25	3.01
Ambuja Cements	334.30	335.30	3.53
Asian Paints	2934.45	2950.00	-0.24
Avanti Feeds	585.55	595.30	2.39