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Taking Stock | Market erases gains to end flat amid volatility; auto shines, metal worst hit

At close, the Sensex was down 37.78 points or 0.07% at 54,288.61, while the Nifty settled 51.50 points or 0.32% lower at 16,214.70.

May 23, 2022 / 04:15 PM IST
After a positive start with the Nifty opening above 16,300, the market remained in positive territory in the first half but erased all the gains in the second half to end on a flat note.

After a positive start with the Nifty opening above 16,300, the market remained in positive territory in the first half but erased all the gains in the second half to end on a flat note.

The Indian benchmark indices ended marginally lower in a highly volatile session on May 23, dragged by metal stocks as the government imposed export duties on iron ore and some steel intermediaries.

At close, the Sensex was down 37.78 points or 0.07% at 54,288.61, and the Nifty was down 51.50 points or 0.32% at 16,214.70.

During the day, BSE Sensex and Nifty50 indices touched 54,931.30 and 16,414.70, respectively.

After a positive start with the Nifty opening above 16,300, the market remained in positive territory in the first half but erased all the gains in the second half to end on a flat note.

"Markets gave up all its gains in afternoon trade today as it simply could not recover after the export tax imposed on steel products with the metal index falling almost 9% to 5,200 levels in morning trade," said S Ranganathan, Head of Research at LKP securities.

Close

"The prolonged Russia-Ukraine conflict coupled with its consequences and inflationary pressures weighed heavily in the minds of investors and traders."

"Prospects of additional market borrowings by the GOI in the wake of the tax cuts on fuel to tame inflation also came to the forefront," he added.

M&M, Maruti Suzuki, HUL, Asian Paints, and Larsen and Toubro were among the top Nifty gainers, while losers included JSW Steel, Tata Steel, Divi's Labs, ONGC, and Hindalco Industries.

IndexPricesChangeChange%
Sensex53,161.28433.30 +0.82%
Nifty 5015,832.05132.80 +0.85%
Nifty Bank33,811.25183.80 +0.55%
Nifty 50 15,832.05 132.80 (0.85%)
Mon, Jun 27, 2022
Biggest GainerPricesChangeChange%
Coal India182.055.50 +3.12%
Biggest LoserPricesChangeChange%
Apollo Hospital3,794.50-43.90 -1.14%
Best SectorPricesChangeChange%
Nifty IT28346.00568.20 +2.05%
Worst SectorPricesChangeChange%
Nifty Pharma12221.5043.10 +0.35%

Among sectors, Nifty Auto and Information Technology indices rose 1 percent each, while the metal index fell 8 percent and the pharma index fell 1 percent.

Also Read - Metal stocks melt down as government imposes export duties

Stocks and sectors

On the BSE, auto, capital goods, and Information Technology indices added 0.5-1 percent, while the metal index declined 8.3 percent, and the power, realty, healthcare, and oil & gas index fell 1 percent each.

BSE midcap and smallcap indices ended in the red.

A long build-up was seen in Container Corporation of India, Ashok Leyland, and M&M, while a short build-up was witnessed in Jindal Steel, JSW Steel, and Tata Steel.

MRPL, Adani Power, and Chennai Petroleum Corporation were among the stocks that touched their 52-week high on the BSE. On the other hand, HPCL, Tata Steel, NMDC, and Lupin hit their 52-week low.

Among individual stocks, a volume spike of more than 300 percent was seen in Jindal Steel, Divis Laboratories, and Adani Ports.

Also Read - Auto stocks trade higher after government cuts excise duty on fuel

Outlook for May 24

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

After a firm start, markets failed to hold on to their early upsurge and simply lost track to end marginally lower. Metal stocks bore the brunt while automobile, realty, and oil & gas stocks also came under selling pressure, thus dragging key indices lower.

Technically, on intraday charts, the Nifty has formed a double top formation and on daily charts, it has formed a Hammer candlestick formation which is broadly negative.

For day traders, 16,200 would act as a crucial support level, and below the same, we could see a quick intraday correction till 16,100-16,050.

On the flip side, the fresh uptrend is possible only after a 16,300 intraday breakout. On breaching the level, the index could move up to 16,400-16,475.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty opened on a positive note & attempted to scale higher on May 23. It went on to test the crucial level of 16,400 where the index had faced resistance in the last two weeks. 16,400 proved to be a strong barrier yet another time.

The hourly chart shows that the upper end of an upward sloping channel also created pressure near 16,400. Thus, the index nosedived towards the end of the session & closed in the red for the day.

The overall structure shows that the Nifty is likely to witness sideways action in the short term. 16,000 – 16,400 is expected to be the range for the next few sessions.

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.
Rakesh Patil
first published: May 23, 2022 04:15 pm
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