The Indian equity benchmarks ended higher in the second consecutive session on May 15, posting a five-month high, supported by realty, FMCG and PSU Banks.
At close, the Sensex was up 317.81 points or 0.51 percent at 62,345.71, and the Nifty was up 84 points or 0.46 percent at 18,398.80.
Amid mixed global cues, the Indian indices started on a flat note but picked up momentum as the day progressed. The falling wholesale price index (WPI) inflation into the negative territory for the first time since July 2020, also boosted the sentiments. However, the last-hour profit booking erased some of the intraday gains.
Also Read: India’s WPI inflation for April falls to -0.92%, lowest in 34 months
Stocks and Sectors
Hero MotoCorp, Tata Motors, ITC, Tech Mahindra and HUL were among the top gainers on the Nifty, while losers were Adani Enterprises, Cipla, BPCL, Divis Labs and Grasim Industries.
Except for power, all other sectoral indices ended in the green with the realty index up over 4 percent, FMCG and PSU Bank indices up 1 percent each, while bank, auto, capital goods, information technology and metal up 0.5 percent each.
BSE midcap and smallcap indices rose 0.5 percent each.
Among individual stocks, a volume spike of more than 500 percent was seen in DLF, Oberoi Realty and Godrej Properties.
More than 150 stocks touched their 52-week high on the BSE, including Lupin, Prestige Estates Projects, HPCL, Titan Company, VST Tillers Tractors, RateGain Travel Technologies, CG Power and Industrial Solutions and AU Small Finance Bank.
Outlook for May 16
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Positive Asian and European market cues coupled with a further drop in wholesale inflation numbers fuelled a major rally as realty shares attracted significant buying interest. India's macroeconomic performance is showing further signs of improvement, and this is providing a major fillip to the markets.
Technically, the Nifty cleared the short term resistance of 18,400 but intraday profit booking at higher levels saw it close below 18,400. For the trend following traders now 18,300 would act as a sacrosanct support zone and above the same the positive momentum is likely to continue. Above which, the index could retest the level of 18,450.
Further upside may also continue which could lift the index till 18,550. On the flip side, below 18,300, the uptrend would be vulnerable and below the same, we may see a quick correction till 18,200-18,150.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty has finally managed to close above the upper boundary level of 18,350 which indicates breakout from a sideways consolidation range. The breakout has put the structure in favor of bulls. The index is likely to witness continuation of the positive momentum.
The ideal strategy to trade such a kind of scenario is to ride the uptrend with a trailing stoploss mechanism. On the upside, we expect the Nifty to reach levels of 18,500 and hence we change our outlook on the Nifty to positive from sideways.
The daily momentum indicator has triggered a negative crossover which is a sell signal, however, until price shows up evidence of the same, we shall continue to maintain a positive outlook.
In terms of levels, 18,500 – 18,520 is the immediate hurdle while 18,190 – 18,220 shall act as a crucial support zone and until this support zone is held, we can expect the dips to be bought into and the positive momentum to continue.
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