The Indian markets ended almost flat in a volatile session on May 21, with Nifty managing to hold above 22,500.
At close, the Sensex was down 52.63 points or 0.07 percent at 73,953.31, and the Nifty was up 27 points or 0.12 percent at 22,529.
About 1,411 shares advanced, while 2,082 shares declined and 128 shares were unchanged.
Amid mixed global cues, the Indian indices opened marginally lower with Nifty slipping below 22,500 to extend the losses in the first half. However, it recovered the losses in the second half amid buying seen in the metal, power, oil & gas, PSU Banks.
Top Nifty losers were Nestle, Hero MotoCorp, ICICI Bank, TCS and Maruti Suzuki, while gainers included Hindalco Industries, Coal India, JSW Steel, Tata Steel and Adani Ports.
Among sectors, metal index was up four percent, power index gained two percent, PSU Bank index rose 1.5 percent, while FMCG was down 0.5 percent.
The BSE midcap index up 0.3 percent while smallcap index fell 0.2 percent.
Nearly 200 stocks touched their 52-week high on the BSE, including Aditya Birla Fashion, Balkrishna Industries, Bharti Airtel, BHEL, Coal India, Hindalco Industries, Indian Bank, Jindal Steel, JSW Steel, Linde India, Oil India, Polycab, Power Grid, SAIL, Tata Steel, among other stocks. Click to view full list
Outlook for May 22
Aditya Gaggar Director of Progressive Shares
Diverging from their strong global counterparts, Indian equities commenced the week on a tepid note but a strong rally in the Energy and Metal counters not only helped the Index to recuperate its losses but compounded its gains as well to end the session at 22,529.05 with gains of 27.05 points.
In addition to Metal and Energy; PSU Banking segment outperformed while FMCG was the major laggard.
A mixed activity was observed in the Broader markets where Midcaps marginally outperformed while Smallcaps ended the day in red.
The Index has formed a bullish engulfing candle on the daily chart which indicates presence of buyers at the lower levels. Once the Index breaches the level of 22,600, we can expect a retest of its previous high of 22,790 while the downside seems to be protected at 22,400.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Nifty witnessed a volatile day of trade today. It opened on a negative note however recovered and closed the day in the green up ~27 points. On the daily charts we can observe that the Nifty has been in the recovery process after testing the lower end of the rising channel. It has now reached the 22570 – 22600 zone where resistance in the form of 78.6% Fibonacci retracement level is placed.
The hourly momentum indicator has triggered a negative crossover which indicates that the Nifty is likely to consolidate. Considering that prices have reached a crucial level and there is a loss of momentum on the hourly time frame we can expect the Nifty to consolidate over the next few trading session. We should keep a stoploss of 22400 for the long positions.
The Bank Nifty also consolidated within a narrow range and closed in the negative, down ~150 points. We believe that it is a brief pause in the overall uptrend and this consolidation should be bought into. We expect the Bank Nifty to rally towards 48320 – 48700 from short term perspective. The hourly momentum indicator has a negative crossover which can lead to a sideways price action however no signs of trend reversal as of now. The trailing stoploss for the long positions should be kept at 47400.
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