Closing Bell: Sensex falls 350 points, Nifty ends below 16,600; financials, power stocks top losers

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Profit-booking at higher dragged the benchmark indices in an otherwise clueless market. With corporate earning seasons nearing an end, traders have started hunting for new clues to drive the market also a lot of shift in portfolios happening.. Reality and media continued the positive momentum whereas banking and energy stocks registered profit booking at higher levels. Technically, a double top formation on intraday charts and Doji candlestick formation on daily charts indicate further weakness from the current levels. We are of the view that in the near future 16700 (55925 on the BSE Sensex) would act as a key resistance level for the traders. Below which Nifty could retest the 16450-16400 (54900-54700 on BSE Sensex). 

On the flip side, a fresh uptrend rally is possible only after the Nifty crosses the 16700 (55925 on BSE Sensex) range breakout. above which it could move up to 16775 (56200 on BSE Sensex). The larger texture of the market is still on the positive side, Hence, contra traders can take a long bet near 16400 on the Nifty (54700 on BSE Sensex) with a strict stop loss near 16350 on the Nifty (54550 on BSE Sensex).

FY22 revenue gap Rs 10.33 lk cr Vs Rs 10.89 lk cr budget aim.#FiscalDeficit pic.twitter.com/1Zl3l7asJb

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Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty lost the afternoon gains on May 31 amid large volume trade on NSE due to MSCI rebalancing trades. Nifty opened gap down, bounced up to make an intra day gain at 1400 Hrs and again fell to close near the intra day low. At close Nifty was down 0.46% or 76.9 points at 16584.6. Among sectors realty and metals gained the most while power and banks fell the most. Smallcap and Midcap indices ended marginally in the positive outperforming the Nifty.

16677-16690 band on the Nifty is proving to be a tough resistance. A breach of 16506 could result in a sharper correction on the downside. Q4 GDP number due out of India this evening will have a bearing on the Indian markets on June 1.

Mohit Nigam, Head - PMS, Hem Securities:

Indian equity markets closed with negative bias in late afternoon session. Financial and IT shares dragged the indices lower, though gains in metal shares lent some support. On the global front, Asian markets were trading mostly in green following the lack of cues from Wall Street overnight due to a holiday, as signs of easing COVID-19 curbs in Beijing and Shanghai as well as the announcement of more stimulus measures in China raised optimism about growth in the world's second largest economy and helped underpin sentiment. European markets were trading mostly in red as attention shifts to inflation and interest-rate hikes. 

On the technical front, the key resistance levels for Nifty50 are 16800 and on the downside 16400 can act as strong support. Key resistance and support levels for Bank Nifty are 36000 and 35000 respectively.

Rupak De, Senior Technical Analyst at LKP Securities:

Nifty remained volatile during the day before closing around the middle of the range. On the higher end, it found resistance at the 50-EMA on the daily timeframe. Going forward, the trend may remain choppy as long as the index remains below 16700. On the lower end support is visible at 16400.

Vinod Nair, Head of Research at Geojit Financial Services:

Domestic market failed to hold on to recovery mode as it was awaiting the release of Q4 GDP data. GDP is expected to register a slower growth rate of 4.0-4.2% as the consumer spending and investments were hit by soaring inflation. A hike in oil prices due to the EU’s ban on Russian oil imports would act as a headwind in taming global inflation. Changes in policy by central banks would be a major factor to be monitored in the coming days.

Rupee at close: Rupee ends at 77.64 per US dollar against May 30 close of 77.54 per US dollar

Market at Close: Benchmark indices ended in last day of May in the red with Sensex down 359.33 points or 0.64% at 55566.41, and the Nifty falling 76.90 points or 0.46% at 16584.50. About 1720 shares have advanced, 1548 shares declined, and 121 shares are unchanged.

Among the sectors, selling was seen in power and financial names while buying was seen in realty, metals and auto stocks. The BSE midcap and smallcap indices ended with gains of half a percent each.

Nifty likely to head towards 17000+ mark: Chandan Taparia of Motilal Oswal Financial Services:

Indian market is taking cues from trend reversal seen in DJIA and Nasdaq, Nifty is likely to head towards 17000+ mark. For Nifty, breakout on daily chart and is headed for 17000+ levels, upside potential of up to 5%. Bank Nifty outperformance to continue towards 37000-38500, upside potential of up to 8%.   

Market at 3.00 PM

Benchmark indices continue to trade in red with Nifty above 16,600

The Sensex was down 252.77 points or 0.45% at 55,672.97 and the Nifty was down 33.45 points or 0.2% at 16627.95. About 1931 shares have advanced, 1136 shares declined, and 120 shares are unchanged.

Source: BSE

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