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

Shree Cement, SBI, Bajaj Auto, Kotak Bank, Tech Mahindra, Ultratech Cement, Axis Bank, and Tata Steel were the top large-cap gainers

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

3:15 PM

MARCH QUARTER RESULTS | Infibeam profit rises 94% QoQ at Rs 33.7 crore

-- Revenue slips 11.6% QoQ at Rs 201.3 crore

-- Ebitda dips 5.9% QoQ at Rs 36 crore

3:12 PM

SECTOR WATCH:: PSU banks extend gains

3:04 PM

Revival of pvt consumption, investment key for post-Covid growth: RBI

Amid uncertainties arising out of the second wave of COVID-19, the Reserve Bank on Thursday said that a durable revival of private consumption and investment would be critical for sustaining economic growth post-pandemic. Observing that 2020-21 has left a scar on the economy, RBI in its annual report said, "in the midst of the second wave as 2021-22 commences, pervasive despair is being lifted by cautious optimism built up by vaccination drives." READ MORE

2:54 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:54 PM

HSBC withdraws from US retail banking to target rich clients, Asia

HSBC Holdings Plc exited its US domestic mass market retail banking business, agreeing to sell 90 branches, as Europe’s biggest lender looks to focus on wealthy clients and steer billions of dollars in capital towards Asia.

 

The London-based bank will retain a network of 20 to 25 locations that will be transformed into international wealth centers, according to a statement. It’s closing 35 to 40 other branches. The bank expects a pretax cost of $100 million from the transactions. READ MORE