Nifty remained strong as it sustained above 16200 throughout the day. Momentum oscillator, RSI is in bullish crossover and rising.
Going forward, a decisive move above 16400 is likely to induce a rally towards 16700-16800. On the lower end, supports are visible at 16200/16000
Nifty built on gains of the previous session on May 27. It opened with an upgap and continued to rise to close almost at the intra-day high. At close, Nifty was up 1.18% or 190.8 points at 16360.9.
Nifty gained for the second consecutive week rising 0.53% for the week. Sentiments seem to have turned for the better over the past two days. A move above 16,414 could take the Nifty swiftly to 16,624 and later 16,825. However, 16,006 support needs to be protected.
The Nifty had a volatile week where it dipped below 16000 mark however managed to recover & closed in the green on the weekly chart. The daily chart shows that the recent dip found support near 78.6% retracement level, which was near 15900. Thereon the index witnessed fresh buying support.
On the way up, it has crossed certain near term hurdles & is now once again approaching the crucial 16400 mark.
The index has been facing resistance near 16400 for the last three weeks. Once the level of 16400 is crossed on a closing basis then the index will be set to target 16620 on the upside. On the other hand, the near term support zone shifts higher to 16200-16220.
Joining the global rally, the investors were in a buying mood following favourable retail earnings in the US. Receding FII selling also provided comfort to the domestic market in bringing down volatility.
The RBI’s upcoming policy meeting will be a key factor in the market, where they are expected to announce an additional policy rate hike of 25-35bps.
Benchmark indices ended higher for the second consecutive day on Ma y27 with Nifty above 16300.
At close, the Sensex was up 632.13 points or 1.17% at 54,884.66, and the Nifty was up 182.30 points or 1.13% at 16,352.50. About 2152 shares have advanced, 1099 shares declined, and 119 shares are unchanged.
Apollo Hospitals, Tech Mahindra, HDFC Life, Hero MotoCorp and IndusInd Bank were among the top Nifty gainers, while losers included ONGC, NTPC, Bharti Airtel, Power Grid Corp and Tata Steel.
Except metal and oil & gas, all other sectoral indices ended in the green. BSE Midcap and Smallcap indices rose 1 percent each.
: Consolidated profit was up 31% at Rs 30.8 crore against Rs 23.5 crore (YoY). Consolidated revenue was up 38% at Rs 597.2 crore against Rs 432.7 crore (YoY).
Crude oil prices traded firm with benchmark NYMEX WTI crude oil were trading 0.16% up near $114.27 per barrel. Crude prices hovered around a two-month high on Friday, with Brent crude on track for its biggest weekly jump in 1-1/2 months, supported by the prospect of an EU ban on Russian oil and the coming summer driving season in the United States.
We expect crude oil prices to trade sideways to up with resistance at $117 per barrel with support at $112 per barrel. MCX Crude oil June contract has important support at Rs 8650 and resistance at Rs 8980 per barrel.
