Indian benchmark indices snapped three-day losing streak and ended higher on Thursday, monthly F&O expiry day, amid positive global cues. While the BSE Sensex closed 503.27 points or 0.94% higher at 54,252.53, NSE Nifty 50 settled 144.40 points or 0.90% up at 16,170.20. Nifty Bank index rose 2.2% and shut shop at 35,094. Sectorally, the Nifty PSU Bank and Metal indices lead gains with 3 per cent and 2.67 per cent rise, respectively. On the downside, Nifty FMCG ended in red, down 0.2%. In the broader markets, BSE midcap index rose 1.4% and smallcap index closed 0.78% higher. Market are likely to remain highly volatile in near-term persistent FII selling, inflation fears. Investors can use dips as buying opportunities to accumulate quality stocks, said analysts and experts.
Palak Kothari, Research Associate, Choice Broking
“On a monthly expiry day index finally managed to close in green note after three days losing streak. The Nifty has formed the Hammer candlestick pattern on a daily time frame which indicates reversal movement momentum for an upcoming session. Moreover, the nifty has taken support from the previous horizontal line and showed back movement crossing above 16,410 level showing fresh buying in the counter. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounce back moment 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 15,900 levels, while on the upside 16,300 may act as an immediate hurdle. On the other hand, Bank nifty has support at 34400 levels while resistance at 35,500 levels.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“Markets witnessed healthy short covering towards the closing hours that helped key indices to reverse the 3-day losing streak. With the US FOMC minutes out of the way now, the market is more or less getting prepared for the likely rate hikes, and hence we saw strong buying on the F&O expiry day. While we may see bouts of selling going ahead due to other negative factors like higher inflation, continuous FII selling, & the Russia-Ukraine conflict, relief rallies will still be seen amidst volatility.”
Deepak Jasani, Head of Retail Research, HDFC Securities
“Nifty went against the trend of the previous 4 sessions on May 26 and build on its early gains to the end to close handsomely in the green. Global stocks were mixed Thursday as traders weighed Federal Reserve minutes that struck a less hawkish note with downbeat remarks on China’s economy by Premier Li Keqiang. Ratings agency Moody’s Investors Service has lowered its growth forecast for India for the current calendar year by 30 basis points from 9.1% to 8.8%. For the next year, the agency has retained its forecast of 5.4%. A move above 16,263 could result in acceleration on the upside for the Nifty while the low of the day i.e. 15,904 will be crucial to be protected.
Mohit Nigam, Head – PMS, Hem Securities
“Overall we believe that market volatility may remain at elevated levels and investors should maintain a cautious stance. One can use these dips to start making new positions in fundamentally good stocks but in a staggered manner. We believe FED’s and RBI actions in June will be an important factor that may decide the direction of the market in the short term. Immediate support and resistance for Nifty are 16,000 and 16,400 respectively. Immediate support and resistance for Bank Nifty are 34,500 and 35,500 respectively.”