Sensex ends in red after volatile trading session, Nifty needs to breach 16400 for any up-move

Domestic equity markets saw a tug-of-war between bulls and bears on Tuesday which was eventually won by the bears as benchmark indices closed with losses. S&P BSE Sensex slipped 236 points or 0.43% to settle at 54,052 while NSE Nifty 50 index was down 89 points or 0.55% at 16,125. Dr Reddy’s Laboratories share price was up 1.93% as the top Sensex gainer, followed by HDFC, Power Grid, and Kotak Mahindra Bank. Tech Mahindra dropped 3.88% to finish the day as the worst-performing Sensex stock, accompanied by HUL, HCL Technologies, and Asian Paints. Bank Nifty outperformed the headline indices and gained 0.12% to close at 34,290. India VIX was up 9.57% on the closing bell, ending above 25 levels.

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty faced selling pressure in the post noon session once again on May 24. It opened flat and rose in the morning to make an intra day high at 1300 Hrs. It later came under selling pressure and closed lower for the second consecutive session. At close, Nifty was down 0.55% or 89.5 points at 16125.2. Among sectors, Bank index was the main gainer while IT, Power, Metals and FMCG fell the most. Broad markets underperformed as the Small and Midcap indices fell more than the Nifty. Nifty continues to run into resistance time and again and a move beyond the 16415-16142 band could result in a move in that direction.”

Rupak De, Senior Technical Analyst at LKP Securities

“Nifty remained directionless during the day leading to volatility in the market. On the higher end, 16400 is likely to remain a resistance over the near term. Support on the lower end remains at 16000-16020. Going ahead, the volatility may continue over the near term. Any decisive breakout above 16400 may induce a strong directional move in the market.”

Palak Kothari, Research Associate, Choice Broking –

“The Nifty has confirmed the shooting star kind of pattern on a daily time frame which indicates downside movement momentum for an upcoming session. Moreover, from the last 14 days Nifty has been trading in a range of 15750-16410 levels, either side breakout can direct further direction. In addition, Nifty has given a closing below 21-Day Moving Average which indicates weakness in the counter. However, the momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone on a daily chart which suggest a northward journey in the counter. The Nifty may find Strong support around 16000 levels, while on the upside 16300 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33600 levels while resistance at 34800 levels.”

Vinod Nair, Head of Research at Geojit Financial Services

“Anxiety of slowing economy & rising interest rates underpinned by soaring inflation continued to haunt the global market. The UK and Eurozone composite PMI registered the slowest rise in business activity in the month of May, worsening global investor risk sentiment. On the domestic front, while all major sectors succumbed to the pressure, the auto sector bucked the market trend this month gaining on fuel price cut and rise in steel custom duty.”

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