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Experts are bullish yet advise maintaining cautious stance and suggest keeping the focus on selection of sectors and stocks
Equity benchmark indices Sensex and Nifty ended Monday’s volatile session higher on May 24 led by gains in banking and financial stocks. At close, the Sensex was up 111 points or 0.22% at 50,651, and the Nifty was up 22.40 points or 0.15% at 15,197.
MidCap and SmallCap indices outperformed the benchmarks. The BSE Midcap sector touched a new record high level of 21,717 while the BSE SmallCap index hit 23,338.
Except FMCG and metal all other sectoral indices ended in the green. Among sectors, Nifty PSU Bank rallied the most over 2% followed by realty, media, IT, and pharma indices, while metals and FMCG indices closed in the red.
IOC, BPCL, SBI, Larsen and Toubro and Axis Bank were among the top gainers on the Nifty, while losers were Shree Cements, JSW Steel, Tata Steel, Britannia Industries and Tata Consumer Products.
SBI share rose 4% to hit an intraday high of Rs 418.90 in early trade after the lender reported an 81% (YoY) growth in net profit to Rs 6,451 crore for Q4. CLSA also maintained a ‘Buy’ rating on the stock and raised its target price to Rs 650 per share.
Here’s how experts see markets trading on Tuesday
Ajit Mishra, VP – Research, Religare Broking:
Markets traded volatile in a range and ended marginally in the green amid mixed cues. After the initial uptick, the benchmark hovered in a range till the end while the movement on the broader front kept the participants busy.
Markets are likely to take cues from the last leg of earnings and scheduled F&O expiry. Besides, global cues and news related to COVID cases and vaccine drive will be closely monitored by the participants. We reiterate our bullish yet cautious stance and suggest keeping the focus on selection of sectors and stocks.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index opened a day with a small gap but showed small profit booking and closed a day at 15, 197 with minimal gains & formed a small bearish candle on daily chart. Going forward index has good support zone around 15,100-15,000 mark and any dip around said level will be again buying opportunity with keeping overall stop out level below 15k mark, immediate resistance is placed at 15,250-15,330 zone and around these level we may see some profit booking.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally positive. It was a flat rotational day as the index remained traded in a range between 15160-15250. Nifty is now a tad below the all-time high of 15431.
As we go into the last few days of May expiry Nifty could see a range-bound action between 15310-15000 for the next couple of days. Expecting that Nifty will not trade above 15430 before the end of May expiry.
Nifty made an all-time high on February 16, 2021, and it is after 63 trading days the index is trying to surpass this peak. CNX 500 is already beyond the peak of February 16 and it is now in uncharted territory. The action will shift to June 2021 contracts. Price action is bullish and notwithstanding a couple of days of narrow-ranged price action, Nifty should trade beyond 15430 in the weeks to come.