The Indian benchmark indices ended higher for the fourth consecutive session on May 30 with the Sensex rising 122.75 points or 0.20 percent to close at 62,969.13, and the Nifty up 35.10 points or 0.19percent to end at 18,633.80.
Amid mixed Asian markets, the benchmarks started the day on a flat note and witnessed a range-bound session. However, last-hour buying helped the index close the session near the day' high, a day ahead of Gross Domestic Product (GDP) data announcements.
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Stocks and Sectors
Top gainers on the Nifty were Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, HCL Technologies and HDFC Life and losers were Hindalco Industries, Adani Enterprises, Tech Mahindra, Tata Steel and Sun Pharma.
Selling was seen in the auto, energy, pharma and metal names, while buying was witnessed in the bank, capital goods, FMCG and information technology names.
The BSE midcap and smallcap indices ended with marginal gains.
A long build-up was seen in Aurobindo Pharma, RBL Bank and Power Finance Corporation, while a short build-up was seen in Vedanta, Info Edge and Chambal Fertilisers and Chemicals.
Among individual stocks, a volume spike of more than 200 percent was seen in Ramco Cement, Aditya Birla Capital and Apollo Hospitals Enterprises.
On the BSE, more than 150 stocks touched their 52-week high including Landmark Cars, Ultratech Cement, Equitas Small Finance Bank, Titan Company, Ujjivan Financial Services, IndusInd Bank, Gravita India, Voltamp Transformers, Supreme Industries, Ramco Cements, Lupin, IDFC, IDFC First Bank, Cummins India and Aurobindo Pharma.
Outlook for May 31
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty witnessed a day of consolidation on May 30 and managed to close the day on a positive note, up around 35 points. On the daily charts, we can observe that after a sharp upmove, the Nifty is witnessing consolidation which is a bullish sign. During this range-bound price action, it will prepare a base for itself and set the stage for the next leg of the upmove.
The hourly momentum indicator still has a negative crossover which points out that the consolidation is still not over, and it could lead to a rangebound price action over the next few trading sessions. In case of a huge gap-up, it is unlikely to sustain at higher levels without support from the momentum indicator.
Overall, the uptrend is intact, and this consolidation shall provide an opportunity for initiating fresh long positions. In terms of levels, 18705 – 18735 shall act as the immediate hurdle zone, while 18570 – 18500 is the crucial support zone from a short-term perspective.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Due to the absence of cues from the US markets which were shut on May 30, local stocks witnessed cautious optimism with selective buying in banking and IT stocks. However, weakness in metals and oil & gas stocks limited the uptick. Investors are also awaiting the US debt agreement deal on Wednesday, as its outcome would determine the market direction in the near to medium term.
Technically, on the daily chart, the Nifty has formed a small body candle which clearly suggests the indecisiveness between bulls and bears. The intraday formation is also suggesting the continuation of a range-bound activity in the near future.
For bulls, 18,665 would be the immediate breakout level, above which the market could rally till 18,725-18,750. On the flip side, below 18,550, selling pressure is likely to accelerate till 18,500-18,475.
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