Markets traded volatile for yet another day but managed to end higher. After the initial uptick, the benchmark hovered in a range for most of the session but sustained recovery in the last one and half hours aided the index to close around the day’s high. Consequently, the Nifty index settled above 14,600; up by 0.8%. The market breadth too was inclined strongly on the advancing side. Mostly sectoral indices traded in the tandem wherein pharma outshined the others.
We feel the timely intervention by the apex bank has relieved the participants to some extent amid the prevailing uncertainty. However, it failed to trigger a decisive move in the benchmark indices and we might see further consolidation. On the flip side, there’s no shortage of trading opportunities on the stock-specific front, so participants should align their positions accordingly while keeping a check on leveraged trades.
May 05, 2021 / 04:24 PM IST
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had tested the 61.8% retracement of the rise from 14151 to 15044 in the last couple of sessions. The selling pressure was got absorbed near this key Fibonacci level of 14492. Thereon the index took a leap on the upside on May 5. On the way up, the index is attempting to cross the key hourly moving averages, which have been acting as hurdles in the last 2-3 sessions.
On the daily chart, the Nifty has formed an Inside bar for which the breakout level on the upside is at 14724. The overall structure shows that the benchmark index is preparing for the next leg of the recovery. So it looks set to test 15000 on the upside in the short term. The swing low of 14416 will act as a reversal level for the bullish stance.
May 05, 2021 / 04:20 PM IST
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services:
The spot is hovering around 74 zone, the Covid related worries are keeping it afloat. But the influential dovish cover is putting pressure on the spot. All eyes are on the US NFP data and it is anticipated to show the US economy adding 950K jobs in April, a better data may establish an uptrend in USDINR spot. So up until then we expect USDINR spot to continue trading sideways in between 73.50 and 74.25.
May 05, 2021 / 04:20 PM IST
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
Nifty May series is expected to trade with a positive bias. Currently support is seen at 14400 levels with resistance seen at 14800/14900. Breach of 14400 can result in increase of short term volatility. Pharma and IT trade with a positive bias while selective value buying opportunities are seen in the BFSI space. Expect an extended phase of consolidation before markets make a directional move.
May 05, 2021 / 04:04 PM IST
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The range continues; the Nifty is unable to get past 14700 or break 14400. If we can close past 14700, we will move to 15100 levels and if we break 14700, we will see the markets drift to 14000-14100. The positive of the current range is that a large move is in the offing where traders can find an appropriate opportunity to make money!
May 05, 2021 / 04:02 PM IST
Vinod Nair, head of Research at Geojit financial services:
Domestic market edged up boosted by pharma and financial stocks following RBI Governor’s announcement and positive global markets. While reassuring RBI’s policy aid, the Governor announced an array of support to the Covid-hit sectors through restructuring schemes and liquidity measures. India’s Service PMI index reported marginal decline in April to 54.0 from 54.6 in March 2021 owing to slow-down in external demand and escalation of the pandemic, but is expected to improve on a QoQ basis from Q2FY21 onwards.
May 05, 2021 / 03:41 PM IST
Market Close: The market ended higher on May 5 after RBI Governor Shaktikanta Das in an unscheduled speech today provided more liquidity support by announcing various measures.
At close, the Sensex was up 424.04 points or 0.88% at 48,677.55, and the Nifty was up 121.40 points or 0.84% at 14,617.90. About 1794 shares have advanced, 1084 shares declined, and 166 shares are unchanged.
Sun Pharma, UPL, Axis Bank, IndusInd Bank and Kotak Mahindra Bank were among the top gainers on the Nifty. Losers were Adani Ports, Bajaj Finance, SBI Life Insurance, Asian Paints and HUL.
All the sectoral indices ended in the green with Nifty Bank, IT, pharma and PSU bank indices rose 1-4 percent.
May 05, 2021 / 03:29 PM IST
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 14500. The trading above 14500 is positive from a short-term perspective. Sustaining above 14500 levels, the market to gain momentum, which could lead to an upside projection till 14800-14900 level. The momentum indicators like RSI, MACD to recover after staying neutral in recent time.
May 05, 2021 / 03:28 PM IST
Abhishek Bansal, Founder Chairman, Abans Group:
Crude oil is now trading near $66.45 is supported by the easing of lockdowns in the US & Europe. It is likely to increase fuel consumption due to eased travel restrictions. The US is easing pandemic curb in New Jersey and Connecticut, also European Union has planned to open up to more foreign visitors who have been fully vaccinated and hold a Digital Green Certificate.
However, Fuel demand in India has plunged as the recent surge in new Covid infections. The overall global Covid-19 caseload has topped 153.9 million, while the deaths have surged to more than 3.22 million, according to the Johns Hopkins University.
Crude oil prices are likely to stay firm while holding above 20 days EMA of $63.42 and 50 days EMA of $61.40, meanwhile, it may find immediate resistance near $67.59 and $68.80.