Indian markets erased some of the previous-session losses and ended higher with Nifty around 22,650 on May 2, as market participants digested the Fed Chair's comments on rate hike after keeping key interest rates unchanged on May 1 meeting.
At close, the Sensex was up 128.33 points or 0.17 percent at 74,611.11, while the Nifty was up 43.35 points or 0.19 percent at 22,648.20.
The market erased opening losses and traded higher throughout the session with Nifty crossing 22,700 led by buying seen across the sectors except realty and banking. However, the second-half selling pressure erased some of the intraday gains.
BPCL, Power Grid Corporation, Asian Paints, Bajaj Auto and Tata Motors were among the top gainers on the Nifty, while losers were Kotak Mahindra Bank, Bharti Airtel, Tata Consumer, Axis Bank and HDFC Life.
On the sectoral front, auto, metal, oil & gas, power up one percent each, while bank and realty indices ended marginally in the red.
The broader indices again outperformed the benchmarks, with the BSE midcap index touched fresh high and ended with a percent gain, while the smallcap index rose 0.3 percent.
Among individual stocks, a volume spike of more than 400 percent was seen in Dabur, Indiamart Intermesh and Bosch.
A long build-up was seen in Cholamandalam Investment and Finance Company, REC, Indiamart Intermesh, while a short build-up was seen in Godrej Properties, IGL and Kotak Mahindra Bank.
More than 250 stocks touched their 52-week high on the BSE, including REC, Ashok Leyland, BHEL, CESC, Federal Bank, Grasim Industries, IRCTC, Jindal Steel, M&M, Mangalam Cement, MOIL, NTPC, Petronet LNG, Polycab, Power Grid Corporation, Raymond, REC, Sobha, among other stocks. Click to view full list
Outlook for May 3
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty opened in the red however recovered and consolidated during the day. It closed in the green up ~43 points. On the daily charts we can observe that the Nifty after the sell in the previous trading session has consolidated. 22,700 on the upside remains a crucial resistance while 22,450 is the crucial support from short term perspective. The Nifty is likely to consolidate within this range over the next few trading sessions.
The Bank Nifty witnessed follow through selling pressure and closed in the red down ~166 points. Overall, the Bank Nifty can also consolidate. Key support on the downside is 49000 – 48900 while resistance is placed at 49800 – 49850. Overall, we expect some consolidation in both the indices.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty closed marginally higher after a volatile trading session. On the hourly chart, it formed a lower peak, indicating a decrease in bullish sentiment. The momentum indicator has crossed into bearish territory, suggesting weak momentum. In the short term, the trend may continue sideways with potential to fluctuate within the range of 22500-22800.
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