The market breathed a sigh of relief following a five-day downturn, which had erased almost 700 points from the Nifty 50 index. Frontline equity indices Sensex and Nifty rebounded from their day's lows, finishing in positive territory after both experienced nearly a one percent decline during morning trading.
Sensex rose 112 points to settle at 72,776 and Nifty closed at 22,104 level, up 49 points, while the Nifty Bank index jumped 333 points to 47,754 led by financials. The HDFC Bank and ICICI Bank contributed 80% to Nifty and Nifty Bank's gains.
Pharma stocks also witnessed buying on upbeat management commentary from Cipla. The management expects margin to improve by 100 basis points year-on-year to 24.5-25.5% for FY25.
Meanwhile, foreign investors continued to remain net sellers in India, while domestic investors remained buyers in the cash market on May 13. FIIs sold ₹4,499 crore and DIIs bought ₹3,563 crore in equities.
Though the market reversed from the day's low and ended up with a marginal gain, investors remain concerned over the progressing general election and high valuation, according to Vinod Nair, Head of Research at Geojit Financial Services.
An absence of major positive triggers and the flight of FIIs from the domestic market is expected to keep the short-term trend weak, Bair said.
Investors now remain watchful ahead of the release of India and US inflation data and the US Federal Reserve chair Jerome Powell's speech to get a near-term direction.
"The week kicked off with market volatility, but by the end, it managed to eke out marginal gains. Initially bearish sentiments gave way to a recovery, particularly among key heavyweights, which not only erased losses but also propelled the index to close near the day’s peak at 22,125.50," said Ajit Mishra – SVP, Research at Religare Broking.
Has the Nifty 50's recovery today given a ray of hope to the bulls and the chartists? Lets find out:
According to Rupak De of LKP Securities, the Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction.
"Additionally, the stock has found support around the previous swing low on the daily timeframe. However, the index's recovery may encounter resistance in the 22150-22200 zone, and only a decisive move above 22200 could trigger a stronger rally in the market. On the lower end, support is situated at 21950," De said.
"Nifty closed with bullish 'hammer' candlestick pattern on the daily chart, which indicates short term bullish trend reversal. On the higher side band 22300-22320 could act as a resistance, while low of 21821, registered today would remain support for the Nifty in the short term. Nifty witnessed almost 1000 points from an all-time high of 22794. Nifty managed to maintain its level above the previous swing low of 21777," said Vinay Rajani, CMT, Senior Technical/Derivative Analyst at HDFC Securities.
Rajani said that the Bank Nifty index broke the nine-day's losing streak by closing with a gain of 365 points. "From the low of the day, Bank Nifty recovered more than 800 points to close at 47786. Resistance for the Bank-Nifty is seen in the band of 48200-48300, while support for the same lies in the zone of 46900-47000 band."
Kunal Shah of LKP Securities said the Bank Nifty index saw a strong recovery from lower levels and managed to hold onto its support at the 100-day exponential moving average (EMA). There's a potential for a pullback towards its 20-day moving average (DMA), positioned at 48,200, he said.
As long as the index maintains the support level of 47,200 on the downside, where bullish activity is evident, the index remains in a buy mode, Shah added.
The Nifty 50 futures across series' shed 0.7% in Open Interest on Monday. The Nifty May futures are trading at a premium of 97.05 points, compared to 85.40 points earlier. On the other hand, the Nifty Bank's futures across series' shed 3.7% in Open Interest.
Nifty 50's Put-Call Ratio is at 0.96 from 0.91 earlier.
Balrampur Chini, Hindustan Copper, GMR Infra, Idea, SAIL, PNB, ZEEL and Canara Bank are still in the F&O ban list, while Piramal Enterprises is new in the ban.
Nifty 50 on the Call side for May 16 expiry:
The Nifty 50 call strikes between 22,100 and 22,300 have seen addition in Open Interest.
Nifty 50 on the Put side for May 16 expiry:
On the put side, the Nifty 50 strikes between 21,800 and 22,100 have seen addition in Open Interest ahead of the expiry:
Vedanta to consider raising funds via issue of equity shares via FPO, rights issue or other ways on May 16.
Hindalco: Novelis Files IPO Paper With US SEC For NYSE listing.
Shriram Finance board approves sale of its housing finance subsidiary Shriram Housing Finance to Warburg Pincus for ₹4,630 crore for equity and convertible instruments of SHFL.
Cochin Shipyard bags order in the range of ₹500-1000 crore from a European client for Hybrid SOVs.
TCS to set up first-of-its-kind human-centric AI Center of excellence in France.
RVNL has received a letter of award (LoA) for an order worth ₹239 crore from Southern Railways.
Coromandel International will acquire an additional 6.99% stake in Dhaksha Unmanned Sys for ₹150 crore.
Sensex rose 112 points to settle at 72,776 and Nifty closed at 22,104 level, up 49 points, while the Nifty Bank index jumped 333 points to 47,754 led by financials. The HDFC Bank and ICICI Bank contributed 80% to Nifty and Nifty Bank's gains.
Pharma stocks also witnessed buying on upbeat management commentary from Cipla. The management expects margin to improve by 100 basis points year-on-year to 24.5-25.5% for FY25.
Meanwhile, foreign investors continued to remain net sellers in India, while domestic investors remained buyers in the cash market on May 13. FIIs sold ₹4,499 crore and DIIs bought ₹3,563 crore in equities.
What Are The Experts Saying?
Though the market reversed from the day's low and ended up with a marginal gain, investors remain concerned over the progressing general election and high valuation, according to Vinod Nair, Head of Research at Geojit Financial Services.
An absence of major positive triggers and the flight of FIIs from the domestic market is expected to keep the short-term trend weak, Bair said.
Investors now remain watchful ahead of the release of India and US inflation data and the US Federal Reserve chair Jerome Powell's speech to get a near-term direction.
"The week kicked off with market volatility, but by the end, it managed to eke out marginal gains. Initially bearish sentiments gave way to a recovery, particularly among key heavyweights, which not only erased losses but also propelled the index to close near the day’s peak at 22,125.50," said Ajit Mishra – SVP, Research at Religare Broking.
What Do The Nifty 50 Charts Indicate?
Has the Nifty 50's recovery today given a ray of hope to the bulls and the chartists? Lets find out:
According to Rupak De of LKP Securities, the Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction.
"Additionally, the stock has found support around the previous swing low on the daily timeframe. However, the index's recovery may encounter resistance in the 22150-22200 zone, and only a decisive move above 22200 could trigger a stronger rally in the market. On the lower end, support is situated at 21950," De said.
"Nifty closed with bullish 'hammer' candlestick pattern on the daily chart, which indicates short term bullish trend reversal. On the higher side band 22300-22320 could act as a resistance, while low of 21821, registered today would remain support for the Nifty in the short term. Nifty witnessed almost 1000 points from an all-time high of 22794. Nifty managed to maintain its level above the previous swing low of 21777," said Vinay Rajani, CMT, Senior Technical/Derivative Analyst at HDFC Securities.
Bank-Nifty breaks 9-day losing streak
Rajani said that the Bank Nifty index broke the nine-day's losing streak by closing with a gain of 365 points. "From the low of the day, Bank Nifty recovered more than 800 points to close at 47786. Resistance for the Bank-Nifty is seen in the band of 48200-48300, while support for the same lies in the zone of 46900-47000 band."
Kunal Shah of LKP Securities said the Bank Nifty index saw a strong recovery from lower levels and managed to hold onto its support at the 100-day exponential moving average (EMA). There's a potential for a pullback towards its 20-day moving average (DMA), positioned at 48,200, he said.
As long as the index maintains the support level of 47,200 on the downside, where bullish activity is evident, the index remains in a buy mode, Shah added.
What Are The F&O Cues Indicating?
The Nifty 50 futures across series' shed 0.7% in Open Interest on Monday. The Nifty May futures are trading at a premium of 97.05 points, compared to 85.40 points earlier. On the other hand, the Nifty Bank's futures across series' shed 3.7% in Open Interest.
Nifty 50's Put-Call Ratio is at 0.96 from 0.91 earlier.
Balrampur Chini, Hindustan Copper, GMR Infra, Idea, SAIL, PNB, ZEEL and Canara Bank are still in the F&O ban list, while Piramal Enterprises is new in the ban.
Nifty 50 on the Call side for May 16 expiry:
The Nifty 50 call strikes between 22,100 and 22,300 have seen addition in Open Interest.
| Strike | OI Change | Premium |
| 22,300 | 8.55 Lakh Added | 47.35 |
| 22,200 | 8.39 Lakh Added | 81.15 |
| 22,100 | 5.24 Lakh Added | 128.2 |
Nifty 50 on the Put side for May 16 expiry:
On the put side, the Nifty 50 strikes between 21,800 and 22,100 have seen addition in Open Interest ahead of the expiry:
| Strike | OI Change | Premium |
| 21,800 | 13.79 Lakh Added | 29.45 |
| 21,900 | 10.59 Lakh Added | 46 |
| 22,100 | 6.13 Lakh Added | 113.75 |
Stocks to watch out for ahead of Tuesday's session:
Vedanta to consider raising funds via issue of equity shares via FPO, rights issue or other ways on May 16.
Hindalco: Novelis Files IPO Paper With US SEC For NYSE listing.
Shriram Finance board approves sale of its housing finance subsidiary Shriram Housing Finance to Warburg Pincus for ₹4,630 crore for equity and convertible instruments of SHFL.
Cochin Shipyard bags order in the range of ₹500-1000 crore from a European client for Hybrid SOVs.
TCS to set up first-of-its-kind human-centric AI Center of excellence in France.
RVNL has received a letter of award (LoA) for an order worth ₹239 crore from Southern Railways.
Coromandel International will acquire an additional 6.99% stake in Dhaksha Unmanned Sys for ₹150 crore.
First Published: May 13, 2024 10:28 PM IST
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