Markets ended May series on high note; here’s what investors should do

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Indian benchmark equity indices ended the May F&O expiry on a record closing high led by strong gains in banks and IT stocks amid positive global cues.

Nifty ended the day at a 15,337, up 0.24%, as the Sensex climbed 97.7 points, to 51,115. The Nifty’s highest close till date was 15,431 on 16 February, 2021.

Broader markets supported the rally with the Smallcap and Midcap indices also closing higher each. The BSE MidCap and SmallCap indices closed 0.54% and 0.34% higher.

Except for pharma and energy, all other sectoral indices ended higher with Nifty Bank, IT and PSU Bank indices adding 1-2 percent. BSE Midcap and Smallcap indices also ended in the green.

On the 30-share Sensex, HDFC Bank, Bajaj Finance, ONGC, and eight other stocks ended in red, while SBI, Kotak Mahindra Bank, Axis Bank, and 16 other stocks ended in green.

More than 350 stocks, including Wipro, Coforge and TVS Motor hit a fresh 52-week high on the BSE.

Here’s what experts say investors should do on Friday

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.

Ajit Mishra, VP – Research, Religare Broking:

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.

Manish Shah, Founder, www.Niftytriggers.com

Nifty is now in the area of sellers. Nifty needs to break above the resistance at 15,430 for the rally to continue if there is a failure to do this there could be selling pressure coming into the market. Breakouts need to be strong and sure if the rally has to continue. In last couple of weeks, many stocks with dubious and shaky fundamentals have been rallying this is a sign that masses are active and usually that is the time when market makes a significant top. What we need is a breakout of the resistance zone at 15,430-15,500 for the rally to continue. On the lower side support is pegged at 15,190. If Nifty breaks below 15,190-15,170 it could be time to get cautious in the market. Tomorrow is the weekly close and maybe things will get clarified then.

Rohit Singre, Senior Technical Analyst at LKP Securities:

One more positive session witnessed & index given close at 15338 with minimal gains of 36 points. On the immediate basis index has formed support near 14275 zone, any break below said levels we may see more profit booking in index towards 15200 zone which is another support on the downside, stiff hurdle still at 15430-15470 zone