CLOSING BELL: Sensex drops over 800 pts; Nifty Slips to 24,683 ; All sectoral indices end in red with auto as the top laggard

Equity benchmarks extended their losing streak for the third consecutive session on May 20, weighed down by weak global cues and sustained FII offloading. The Nifty opened on a firm note, briefly reclaiming the psychological 25,000 mark, but failed to hold on to early gains amid lackluster follow-through buying. The index faced selling pressure near resistance levels and breached the key support zone around 24,850 during midsession trade. Intensified profit booking in the latter half triggered a sharp decline, dragging the index to close near the day’s low at 24,683.90, down 261.55 points or 1.05%. Broader market sentiment was weak, with the Nifty Midcap and Smallcap indices ending lower by 1.3% and 0.8%, respectively, reflecting risk-off undertones. Sectoral indices were deep in the red across the board, with Nifty Auto, Bank, Pharma, and FMCG indices registering losses in the range of 1–2%, indicating broad-based selling pressure.

NIFTY formed a sizable bear candle with a lower high and lower low signaling corrective decline for the third session in a row. In the near term, we expect the index to enter a consolidation phase within the 24,400–25,200 range, thereby working off the overbought conditions indicated by the daily stochastic oscillator following the recent sharp uptrend. Crucial support is seen at the 24,350–24,400 zone, which coincides with the prior week’s low, the 20-day exponential moving average (EMA), and the 61.8% Fibonacci retracement of the preceding rally from 23,935 to 25,116.

Bank Nifty formed a bear candle with a lower high and lower low signaling profit booking at higher levels at the upper band of the falling channel. Bank Nifty continues to consolidate in the broad range of 56,000-53,500 in the last 4 weeks. A key technical observation on the daily chart is that the index has been trading within a downward-sloping channel for the past 19 sessions. In the last 19 sessions it has retrace just 38.2% of the prior 9-session rally (49,157–56,098), indicating a shallow pullback that suggests underlying strength and potential higher bottom formation. We expect the index to extend the last 4 weeks’ consolidation in the range of 53,500-56,000. Within the consolidation we believe dips should be used as buying opportunity. Key support at 53,000-53,500 being the confluence of key retracement and 50 days EMA

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates:

Nifty opened on a positive note, witnessed selling pressure, and finally settled the day on a negative note at 24,684 level.

Technically, Nifty formed a big red candle on the daily scale and breached the major support zone of 24,800–24,850, signalling weakness. The next major support for the index is placed near 24,390, where the 21-Day Exponential Moving Average (21-DEMA) is positioned. On the upside, immediate resistance is seen around 24,850. As long as the index trades below this level, traders are advised to adopt a stock-specific approach and keep on booking profits on bounce.

The Bank Nifty index opened on a positive note but failed to surpass the high of the previous session’s shooting star candle, leading to profit booking. Technically, the index confirmed the shooting star candlestick pattern by sustaining below 55,290 and registered a low of 54,829 level, as expected. As long as Bank Nifty remains below 55,290, further weakness is likely. On the downside, strong support is seen near 54,460, where the 21-DEMA is placed. Traders are advised to follow a sell-on-rise strategy in Bank Nifty as long as it stays below 55,290

Devarsh Vakil - Head of Prime Research, HDFC Securities:

Indian Markets Tumble on Rising Bond Yields and Fears of Covid Resurgence.

Indian equity benchmarks declined sharply today amid reports of increasing COVID-19 cases in Southeast Asian countries like Singapore and Hong Kong. The Nifty fell for the third consecutive session, shedding 261 points (1.05%) to close at 24,683, while the BSE Sensex dropped 873 points (1.06%) to 81,186.

Market sentiment remained negative, with 42 of 50 Nifty constituents ending in the red. The NSE advance-decline ratio stood at 1:2, reflecting widespread investor caution across sectors, particularly in auto, defence, and financial stocks.

The Indian Rupee snapped its two-day streak, falling 24 paise against the dollar to settle at 85.63. This depreciation stems from equity market declines and foreign fund outflows.

Investors also monitored ongoing India-U.S. trade discussions, adding further market pressure.

Japanese bond sell-off has elevated borrowing costs, contributing to global market uncertainty and dampening risk appetite.

Nifty Midcap100 and Smallcap100 indices closed weak, forming bearish "Engulfing" candlestick patterns. Midcap 100 fell 1.62% while Smallcap 100 dropped 0.94%. Market breadth turned negative after six consecutive positive days, with BSE advance-decline ratio at 0.58.

All sectoral indices closed in red, with Auto, Healthcare, Media, and Pharma experiencing the heaviest losses. Auto stocks were particularly weak, with three of the top four Nifty losers from this sector, amid valuation concerns and an uncertain demand outlook.

Technically, Nifty closed below its 5-day EMA for the first time since May 8, 2025, suggesting a shift to profit-booking. Support levels lie at 24,494 and 24,378, while resistance is expected in the 24,800-24,900 range.

Rupak De, Senior Technical Analyst at LKP Securities:

The Nifty slipped after two days of consolidation, dragged down by broad-based selling and weakening market breadth. Despite this decline, the short-term trend remains strong, although there is a possibility of a deeper pullback toward the 21-day EMA on the daily timeframe. The negative divergence on the daily RSI has added to the bearish sentiment. If Nifty sustains below 24,700, the correction could extend further, potentially towards 24,300. However, if the index moves back above 24,700, it may signal a return to a consolidation phase.

Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity – Ashika Stock Broking:

The Nifty opened flat at 24,996 and briefly touched a high of 25,010 before witnessing a sharp sell-off, sliding to a low of 24,676—currently trading near the day’s lowest level. The weakness was widespread, with all sectoral indices closing in the red. The worst-hit sectors included Automobile, Consumption, Healthcare, Media, and Financial Services, reflecting heavy profit booking. The broader market also faced significant pressure, with the Nifty Midcap 100 plunging 1.64% and the Nifty Small cap 250 declining 0.85%.

On the derivatives front, the market breadth was extremely weak, with only 18 stocks advancing against 202 declining. Open interest spurt was seen in RBL Bank, Zydus Life, DLF, Astral, and Hindalco. The highest open interest buildup on the call side is at 25,000, while put writing is concentrated at 24,500 and 24,000, indicating key support zones ahead. The Put-Call Ratio (PCR) dropped to 0.48.

#1 Nifty Bank falls 543 points to 54,877 with HDFC leading the declines

#2 Midcap index falls 923 points to 56,183

#3 Eternal is top nifty loser, down 4% post shareholder nod for FII holding cap

#4 Autos reverse Monday’s gains, 3 Of 4 top Nifty losers are auto stocks

#5 Defence stocks decline for second consecutive day, falling 2 to 8%

#6 NSE Advance-Decline ratio is 1:2

Nifty Bank Falls 543 Points To 54,877 & Midcap Index 923 Points To 56,183

Eternal Is Top Nifty Loser, Down 4% Post Shrhldr Nod For FII Hldg Cap

Autos Reverse Monday’s Gains, 3 Of 4 Top Nifty Losers Are Auto Stocks

Defence Stocks Decline For 2nd Consecutive Day, Fall 2-8%

At closing, the Sensex was down 872.98 points or 1.06 percent at 81,186.44, and the Nifty was down 261.55 points or 1.05 percent at 24,683.90. About 1398 shares advanced, 2415 shares declined, and 127 shares unchanged.

Broader markets saw decline across midcap and smallcap of about 1 to 1.60%.

India VIX at 0.12%.

Auto sector leads the losers' pack.

Max Healthare Q4

#1 Net Profit (GU) 21% (YoY) at Rs 376 crore

#2 Net Revenue (GU) 29% (YoY) at Rs 2,326 crore

#3 EBITDA (GU) 26% (YoY) at Rs 632 crore

#4 Margin at 27.2%

Hindalco Q4

#1 Net Profit (GU) 10.5% (YoY) at Rs 1,561 crore

#2 Revenue (GU) 13.4% (YoY) at Rs 25,116 crore

#3 EBITDA (GU) 35.5% (YoY) at Rs 3,008 crore

#4 Margin At 11.98% (YoY)

#1 Revenue Up 10.60% at Rs513.60 Cr Vs Rs 464.40 Cr (YoY)

#2 EBITDA at Rs25.60 Cr Vs Rs1.50 Cr (YoY)

#3 Margin at 4.98% Vs 0.32% (YoY)

IIFL Securities On CNBC-TV18:

There Are Options Via Which Govt Can Provide Relief To Vodafone

Won’t Be Surprised If The Govt Takes Up More Stake In Vi If No Solutions Work Out

Outright Relief Measure For Vi From The Govt Could Be Viewed As Contempt Of Court

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# Net Profit (RD) 23.5% At Rs 46.8 Cr

# Revenue (GU) 1% At Rs 1,747.8 Cr

# EBITDA (RD) 14.3% At Rs 205.8 Cr

# Margin At 11.8%

#Net Profit At Rs 1,171 Cr

# Revenue At Rs 6,528 Cr

# EBITDA At Rs 2,126 Cr

# Margin At 32.6%

SEBI approves India IPO plans

Trading volume surges

At 12:00 pm, the Sensex was down 324.18 points or 0.40 percent at 81,735.24, and the Nifty was down 79.55 points or 0.32 percent at 24,865.90. About 1537 shares advanced, 1796 shares declined, and 117 shares unchanged.

QIB – 0.01 times

NII - 3.32 times

Retail – 10.25 times

Overall – 2.78 times

During today's session, Coal India shares experienced a notable surge, climbing 3.29% to reach Rs 415.95. This increase was accompanied by a significant rise in trading volume, with 8,742,475 shares changing hands.

30-year Treasury yields top 5% amid growing concerns over deficits, fiscal policy, and inflation.

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Our systems were actively used in the field during the recent conflict. On the Emergency Defence Procurement, the projects are being discussed. We are actively involving ourselves and are hopeful that good orders will come for us from the Emergency Defence Procurement plan. Will know in an a week or so the quantum of orders that will come for BEL. We are expecting a minimum 8-10 line items but it is early to say exactly what.

Gujarat Gas reported a 29 percent year-on-year increase in standalone net profit to Rs 287 crore for the January–March quarter, compared to Rs 222 crore in the same period last year. The profit exceeded Bloomberg analysts' consensus estimate of Rs 235 crore. Revenue was down 1 percent to Rs 4,102 crore, compared to Rs 4,152 crore in the previous quarter.

DLF shares rose 3.5 percent after the company reported a 36 percent year-on-year increase in net profit to Rs 1,282 crore. Revenue surged 46.5 percent to Rs 3,127.6 crore. EBITDA for the quarter rose 29.7 percent from the year-ago period to Rs 978 crore. However, EBITDA margins narrowed by 400 basis points, declining to 31.3 percent from last year.

State-run NLC India surges 8 percent after it reported a 323 percent year-on-year (YoY) surge in net profit to Rs 482 crore for the fourth quarter ended March 31, 2025, compared to Rs 114 crore in Q4 FY24. Revenue from operations increased 8.3 percent to Rs 3,836 crore, up from Rs 3,540.6 crore in the same period last year. EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 43 percent YoY to Rs 861.3 crore from Rs 602 crore, while the EBITDA margin improved to 22.5 percent from 17 percent.

Redington's stock rose 4 percent after the company reported a net profit of Rs 917.7 crore in Q4, a surge of 183 percent compared to Rs 323.9 crore in the same period last year. Revenue for the quarter also witnessed significant growth, rising 17.9 percent to Rs 26,439.7 crore from Rs 22,433.4 crore in Q4 FY2024.

Indian markets opened higher, tracking global equities. The benchmark Sensex opened 0.2% higher, gaining 134.44 points to reach 82,200, while the Nifty rose 0.16%, adding 30 points to trade at 24,975.

Indian markets opened flat in the pre-opening session. The benchmark Sensex rose 0.06 percent, or 47.73 points, to 82,107.15, while the Nifty opened 0.2 percent higher at 24,996.20.

The home currency opened at 85.47 per dollar and was trading 0.1 percent weaker than its previous close of 85.40.

The rupee is expected to trade in a stable range of 85.00–85.80 in the near term. As the dollar continues to slide due to deepening fiscal concerns in the U.S., the rupee may witness further appreciation. Additionally, upcoming IPOs in India are likely to attract more FII inflows, further strengthening the currency.

Nifty closed on a cautious note yesterday, declining 0.3% and slipping below the key psychological level of 25,000, largely due to Moody’s downgrade of the US sovereign rating from "Aaa" to “Aa1”. The session saw both FIIs and DIIs as net sellers — their first joint selloff in over a month — with FIIs having sold Rs 1.09 lakh crore so far this year. Technically, Nifty appears overbought on short-term charts, with key support at 24,729 and resistance near 25,257. A 'Short Squeeze' could emerge on optimism around potential rate cuts by the Fed and RBI. Stock-specific action was strong: Divi's Labs hit a record high post a 23% YoY rise in Q4 profit; Delhivery surged on a turnaround Q4 PAT of Rs 73 crore vs. a loss last year; Graphite India (+17%) and HEG (+7.77%) rallied on news of plant closures by Japan’s Resonac; Zen Technologies hit upper circuit after Q4 PAT jumped 189% YoY; while Protean eGov fell 20% after losing a key Income Tax Department contract. Key Q4 results today include Dixon Technology, Fortis, GSFC, Hindalco, JK Tyre, Max Health, NHPC, Torrent Pharma, and Zydus Life. The day’s top trading ideas include bullish setups in Oberoi Realty, Coal India, HUDCO, Indian Bank, and Paytm, with Oberoi Realty standing out as a strong buy on a potential breakout.

Indian rupee is expected to open a tad weaker st 85.44 and will remain in a range of 85.25/75 for the day as there is no fresh market indicator for it to change course. With US yields falling there could be some buying in $ to take the pair higher. Exporters should however, hedge near to 85.70/75 levels while importers to wait for hedging while intra-day buying can be done near to 85.25/30 levels as rupee is in a consolidating mode after last month's high frequency movements seen.

The Nifty ended 74 points lower yesterday and finished below 25,000, but the odds are high this is a result of people taking profits after Thursday's jump. Such stalls are often seen after big up-moves, but as long as this dip does not take us below the 24753 to 24860, dip buying should emerge. Global cues remain positive, with the S&P ending higher for the sixth straight day yesterday, which was the fifth time it has done that since the early April tariff-led lows. Speaking of seasonality, the current week has seen the nifty advance in 90% of instances over the last decade, so that's another tailwind.

#1 Net profit at Rs 331 crore up 85% YoY

#2 Revenue Rs592 cr, up 8.2% YoY

#3 Total costs Rs384 cr, up 1.6% YoY

#1 Net loss at Rs 95.49 crore vs net profit of Rs 94.38 cr YoY

#2 Revenue Rs3656 cr vs Bloomberg estimate of Rs 5462 cr

#3 Total costs Rs3610 cr, up 3.1% YoY

#4 EBITDA Rs67.36 cr vs Bloomberg estimates of Rs204 cr

#5 Q4 had exceptional loss Rs158 cr on credit loss, others

Hindalco Industries, Zydus Lifesciences, Aster DM Healthcare, Dixon Technologies, EIH, Fortis Healthcare, Gland Pharma, JK Tyre & Industries, Laxmi Organic Industries, Max Healthcare Institute, NHPC, Solar Industries India, Talbros Engineering, Torrent Pharmaceuticals, United Spirits, and Whirlpool of India will release their quarterly earnings on May 20.

On Monday, India’s benchmark Sensex closed 270 points lower at 82,059, while the Nifty ended 74 points down at 24,945. On the BSE, 2,524 stocks advanced, 1,571 declined, and 178 remained unchanged

After an initial drop at the open, U.S. markets shrugged off the downgrade of the country's credit rating, as Treasury Secretary Scott Bessent downplayed concerns, stating that the government is committed to reducing spending and boosting the economy. The S&P 500 index climbed for a sixth consecutive day, closing 0.1 percent higher. The Dow Jones gained 0.3 percent, while the Nasdaq ended flat. Brazil’s Ibovespa also closed 0.3 percent higher

Asian stocks are trading higher. The Nikkei gained 0.45 percent, the Hang Seng is up 0.8 percent, while the Shanghai Composite is marginally higher by 0.1 percent.

Trends on GIFT Nifty indicate a positive start for the broader Indian index, with gains of 83 points or 0.33 percent. Nifty futures were trading around the 25,073.5 level.