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Taking Stock | Market ends flat amid volatility; auto, IT drag, metals shine

Broader indices underperformed the benchmarks, with the BSE midcap index falling 0.47 percent and smallcap index closing 0.87 percent lower

May 02, 2022 / 04:38 PM IST

The Indian market started the holiday-shortened week on a negative note on May 2 amid weak global markets but some last-hour buying helped the benchmarks recover losses to end flat.

At close, the Sensex was down 84.88 points, or 0.15 percent, at 56,975.99 and the Nifty was down 33.40 points, or 0.2 percent, at 17,069.10.

The market will remain shut on May 3 on account of Eid.

"The recent hawkish turn by the Fed has made investors extra cautious ahead of the upcoming Fed meeting, triggering high volatility in the market," said Vinod Nair, Head of Research at Geojit Financial Services.

The rising dollar index, FII selling spree and elevated commodity prices further hammered the risk sentiment, he said.

Close

On the other hand, domestic numbers like the goods and service tax collections, auto sales numbers and April’s Manufacturing PMI gave a sense of an improving economic outlook, Nair said.

Apollo Hospitals, Eicher Motors, Titan Company, Bajaj Auto and Wipro were among the top Nifty losers, while gainers were IndusInd Bank, Coal India, Tata Steel, Power Grid Corporation and HDFC.

Among sectors, auto and IT indices fell a percent each, while the metal index gained 0.5 percent.

IndexPricesChangeChange%
Sensex54,252.53503.27 +0.94%
Nifty 5016,170.15144.35 +0.90%
Nifty Bank35,094.90755.40 +2.20%
Nifty 50 16,170.15 144.35 (0.90%)
Thu, May 26, 2022
Biggest GainerPricesChangeChange%
Tata Steel1,052.0052.90 +5.29%
Biggest LoserPricesChangeChange%
ITC266.70-6.00 -2.20%
Best SectorPricesChangeChange%
Nifty PSU Bank2501.8576.65 +3.16%
Worst SectorPricesChangeChange%
Nifty FMCG37849.20-81.75 -0.22%

Stocks and sectors

On the BSE, capital goods, auto and IT indices fell a percent each, however, some buying was seen in the FMCG, metal, power and realty names.

Broader indices underperformed the benchmarks, with the BSE midcap index falling 0.47 percent and the smallcap index shedding 0.87 percent.

A long build-up was seen in Tata Chemicals, Can Fin Homes and IndusInd Bank, while a short build-up was seen in Dixon Technologies, Dr Lal PathLabs and Aarti Industries.

More than 100 stocks, including Vadilal Industries, Mangalore Refinery & Petrochemicals, RSWM, Cupid, Chennai Petroleum Corporation touched their 52-week high on the BSE.

Among individual stocks, a volume spike of more than 100 percent was seen in Dixon Technologies, Tata Chemicals and Astral.

Outlook for May 4

Ajit Mishra, VP-Research, Religare Broking

Markets managed to rebound amid a weak global setup, which shows that the bulls are not in the mood to surrender. The real test, however, would be to handle the volatility after the Fed meeting that ends May 4.

Domestic factors like earnings and macroeconomic data would further add to the choppiness. It’s prudent to limit positions and continue with stock-specific trading.

Mohit Nigam, Head-PMS, Hem Securities

We believe the volatility will continue in the markets due to the recent hawkish turn by the Federal Reserve.

Some of the factors pulling indices down are FII selling, rising commodity prices and a rising dollar index. GST collection, auto sales and manufacturing PMI are some of the positives.

Immediate support and resistance for the Nifty are 16,700 and 17,200, respectively. Immediate support and resistance for the Bank Nifty are 35,500 and 36,500, respectively.

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

Early losses were mostly in reaction to the Wall Street slump on April 29 but markets recovered most of the losses as investors covered some shorts ahead of the trading holiday on May 3.

Robust GST collections for April also calmed investors, who are already bearing the brunt of the Russia-Ukraine war and volatile oil prices.

Investors are also awaiting the outcome of the US Fed's monetary policy announcement.

The Nifty is holding above 16800 but at the same time, it is failing to show sustained momentum.

In short, the market is consolidating within a broad trading range of 17,400 and 16,800. We may not see any trending move in the market unless it crosses 17,400 or breaks 16,800. A close below 16,800 will be negative for the market.

The volatility index is well above the 20 level, which is an indication that the market is about to break the trading range in the near future.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Rakesh Patil
first published: May 2, 2022 04:38 pm
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