Sensex see-saws 487 pts, ends 14 pts down; HDFC Bank, RIL top laggards

Stock market updates: A range-bound trade ended flat on Tuesday as indecision weighed on investors' minds. Tracking solid global cues, the domestic equity indices opened gap-up with the frontline S&P BSE Sensex and NSE's Nifty50 indices extending their gains to surge as high as 50,961 and 15,294 levels, respectively in the intra-day deals. However, profit-booking at higher levels and selling in financial counters put a lid on gains. 

During the day, the BSE barometer of 30 shares gyrated within a band of 490 points and eventually settled 14 points lower from previous day's closing at 50,637.5 levels. On the NSE, the Nifty50 defended the psychological level of 15,200 and shut shop at 15,208, up 11 points. 

Up to 2 per cent selling in heavyweights such as HDFC Bank, Reliance Industries, Axis Bank, Kotak Bank, HDFC, ITC, and IndusInd Bank largely dragged the indices lower. Meanwhile, Infosys, Asian Paints, TCS, Titan Company, and ICICI Bank, that gained between 0.4 per cent and 3.5 per cent, supported the indices. 

Overall, JSW Steel, Asian Paints, Titan, Eicher Motors, Britannia, and Bajaj Finserv were the top gainers on the benchmark indices while HDFC Bank, HDFC Life, Axis Bank, IndusInd Bank, Coal India, and Reliance Industries were the top laggards.

In the broader markets, the S&P BSE MidCap index slipped 0.3 per cent as against the S&P BSE SmallCap index that rose 0.3 per cent.

From sectoral view point, all financial indices -- the Nifty Bank, Private Bank, PSU Bank, and Financial Services indices -- slipped between 0.9 per cent and 1.4 per cent. On the upside, the Nifty Media index zoomed 3 per cent, followed by the Nifty IT index (up 1 per cent) and the Metal index (0.6 per cent).

Global indices

European stocks advanced on Tuesday morning as easing inflation fears lifted global market sentiment. The pan-European STOXX 600 index rose 0.3 per cent to an all-time high of 446.47 points after it surpassed its early-May peak of 446.19. Germany’s DAX also gained 0.8 per cent and hit fresh peak.

Earlier in Asia, Japan's Nikkei added 0.7 per cent, South Korea's Kospi gained 0.9 per cent, and China's Shanghai Composite zoomed over 2 per cent.

5:13 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty remains positive. There is a possibility of further consolidation or minor weakness in the next 1 or 2 sessions before showing upside bounce from the lows. Immediate support is placed at 15130.

4:59 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended little changed on May 25 after a volatile session. Nifty opened higher, but started to fall soon thereafter. After making an intra day bottom at 1430 Hrs, a small recovery followed. At close, the Nifty was up 10.80 points or 0.07% at 15208.50.

 

Volumes on the NSE were a little short of recent averages as participants did not want to carry forward a lot of positions ahead of the F&O expiry on May 27. Among sectors, Consumer Durables and IT gained the most, while Banks and Power fell the most.

 

Asian stock markets followed Wall Street higher Tuesday as inflation fears eased and investors regained an appetite for risk. European shares rose to record highs on Tuesday, aided by a rally in tech stocks after soothing comments from the Federal Reserve and efforts by China to nail down commodity prices.

 

Nifty has again run into resistance closer to 15300 levels. Reports of a fresh stimulus package in India have raised hopes of an economic turnaround soon. 15137-15294 will be the trading band for the Nifty in the near term. 

4:42 PM

Sectors to track on Wednesday

In a volatile trading session, markets failed to hold on to its early gains and ended on a mixed note. This means that the expiry pressure is higher in the market. Technology and FMCG stocks were the strengths of the market today, else the market would have closed in negative territory. The Nifty has made a higher bottom at 15163 and rebounded sharply to close above the previous day's closing.  It looks like the market is preparing to cross the all-time highest level, which is at 15431.

The basic trend of the market is bullish and our strategy should be to buy on dips or at major supports. The 15125 and 15050 levels should be major supports. On the higher side, 15330 and 15430 levels would be major obstacles. On Wednesday, the focus should be on Auto, Pharmaceuticals and Financials.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

4:32 PM

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

Market witnessed a positive opening following reports of next set of stimulus measures and declining covid cases while a selling streak in banking stocks forced the market to shed its morning gains and close flat. As per the reports, the central government is preparing the next set of support measures to minimize the second wave's economic impact, especially for worst-hit sectors. Barring financials that witnessed profit booking, all major sectors traded in the green. Supported by global markets as Fed officials reiterated that the inflation is transitory beating down worries.

4:23 PM

How to navigate a side-ways market?

In absence of any major event, global cues will continue to dictate the market trend in near future. Besides, any news of unlocking by the state governments will also be closely watched as we’re seeing a sustained decline in new COVID cases. We feel the choppiness may continue especially in the F&O stocks ahead of the upcoming monthly expiry of May month contracts. Traders should align their positions accordingly and continue with the “buy on dips” approach.

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

4:11 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Nifty again closed with minimal gains at 15,208 and formed a bearish candle on the daily chart. The index has a very good base around 15,100-15,000 and, thus, any dip near the said levels will be a good buying opportunity, keeping the overall stop out level below 15,000-mark. Until & unless we don’t see any close below 15K. the structure will be positive and we may head towards 15,330-15,430 zone. These levels, however, will be immediate levels to book profits on the higher side

4:01 PM

MARKET OUTLOOK :: Nifty may surpass 15,600 in a fortnight

Double rejections at 15,250 on Monday, one each at the opening hour and the closing hour, had raised the possibility of a pullback today. So, even though, opening burst took Nifty shortly past 15,250, it could not sustain, lending a weak bias through the first half of the day. This was mostly led by banks. However, positive global cues, as well as expectations of sectoral stimulus, held Nifty together, with metals as well as IT leading the charge. Besides the derivatives expiry, traders will also be eyeing the 3rd phase of peak margin rules, which calls for a higher margin requirement for intraday trades. Nevertheless, the technical structure looks set for taking Nifty well past 15,600 in a fortnight

Views by: Anand James, Chief Market Strategist at Geojit Financial Services

3:56 PM

BSE Snapshot :: Advance to decline ratio remains 1:1

3:54 PM

Broader market :: S&P BSE SmallCap outperforms benchmarks

>> The index hit record high of 23,495.73 in intra-day deals

3:51 PM

Broader market :: BSE MidCap index ends in the red after hitting record high

>> The index hit fresh new peak of 21,844.75 earlier today

3:48 PM

NSE Snapshot :: Top Nifty50 gainers today

3:45 PM

Sensex contributors :: HDFC Bank, RIL top drags on the index today

3:43 PM

Sectoral trends on the NSE :: Banks and financials extend decline

3:42 PM

Sensex Heatmap at Close

Top gainers: Asian Paints, Titan, Bajaj Finserv

Top losers: HDFC Bank, Axis Bank, RIL

3:36 PM

CLOSING BELL

During the day, the BSE barometer of 30 shares gyrated within a band of 490 points and eventually settled 14 points lower from previous day's closing at 50,637.5 levels. On the NSE, the Nifty50 defended the psychological level of 15,200 and shut shop at 15,208, up 11 points.