Technical Overview – Nifty 50
Benchmark is soaring following the breakout from the previous week. At its highest point, the index was 23,110.
A DOJI (indecisive) candle has formed on a daily time frame. High volatility was seen in the second half on the session, with a 200-point quick down move and a recovered 70 points back, the channel upper band is approaching the index and might act as resistance in upcoming sessions. The INDIA VIX, a measure of fear, is gradually reaching all-time highs as the election results approach, indicating that the following several days will be quite volatile.
A mean reversion to the 10 and 20 DEMA is most likely anticipated in the benchmark index. The support levels 22,800 and 22,700 should be attentively watched in the upcoming sessions, while the resistance levels 23,150 and 23,250 can be considered.
Technical Overview – Bank Nifty
Throughout the day, the Banking Index performed better than the benchmark index, reaching a level of 49,680, which is only 285 points behind all-time highs.
Near its all-time high, the banking index created an inverted hammer/shooting star candle. In the final thirty minutes of the session, the index saw significant volatility, moving almost 400 points in that time. The previous 75-minute decline appears to be some profit booking ahead of the next election results. Future sessions will see continued volatility, and the index has to be actively monitored.
In the banking index, a mean reversion to the 10 and 20 DEMA is probably in line. In the next sessions, the resistance levels 49,700 and 49,900 can be taken into consideration, while the support levels 48,600 and 48,450 should be closely monitored.
Indian markets:
- On Monday, May 27, the Indian stock market benchmarks, the Nifty 50 and the Sensex, closed flat after reaching new intraday record highs due to profit booking at higher levels amid mixed global cues.
- Sector-wise, banking, realty, and information technology indices each gained 0.5 percent, while oil & gas, power, and media sectors declined by 0.5-1 percent.
- The BSE midcap index rose by 0.6 percent, while the smallcap index ended flat.
Global Markets:
- Asia-Pacific markets rose on Monday as official data showed a rise in China’s industrial profits during the first four months of the year.
- According to the National Bureau of Statistics, China’s industrial profits increased by 4.3% year-on-year from January to April.
- Mainland China’s benchmark CSI 300 index climbed 0.95%, while Hong Kong’s Hang Seng index added 1.27%.
- South Korea’s Kospi rose 1.32%, and the small-cap Kosdaq gained 1.02%.
- Japan’s Nikkei 225 climbed 0.66%, and the broad-based Topix rose 0.87%, rebounding from Friday’s losses.
- The Australian S&P/ASX 200 gained 0.79%, snapping a four-day losing streak.
Stocks in Spotlight
- Cochin Shipyard, a PSU, surged nearly 3.2 percent to reach a new high of Rs 2,100 on the National Stock Exchange (NSE) following strong March quarter (Q4FY24) earnings. The state-run defense company reported a nearly seven-fold year-on-year increase in net profit to Rs 258.90 crore, while its revenue rose by 114.3 percent YoY to Rs 1,286 crore, driven by strong performance in both segments.
- Glenmark Pharma shares soared 8 percent as the management’s optimistic growth guidance overshadowed the drugmaker’s weak quarterly performance. Despite reporting poor earnings for the January-March quarter of FY24, the management announced a target of double-digit profit growth for FY25. Additionally, they projected that the EBITDA margin would increase to 19 percent in FY25.
- Ashok Leyland surged 8 percent to an all-time high of Rs 222.85 per share on May 27, following strong January-March quarter (Q4FY24) performance. Brokerages maintained their positive outlook on the company due to strong guidance for FY25, attractive valuations, and an optimistic commercial vehicle demand outlook.
News from the IPO world🌐
- Mumbai-based Garuda Construction and Engineering refiles DRHP for IPO
- Awfis Space Solutions IPO: Issue subscribed over 32X so far on last day, NII portion booked 76X
- OYO withdraws DRHP, to refile IPO post refinancing
Daily Leader board:
Sectoral Performance
| Top Sectors | Day change (%) |
| NIFTY PSU BANK | 1.3 |
| NIFTY REALTY | 0.9 |
| NIFTY BANK | 0.6 |
| NIFTY PRIVATE BANK | 0.5 |
| NIFTY FINANCIAL SERVICES | 0.5 |
Advance Decline Ratio
| Advance/Declines | Day change (%) |
| Advances | 1650 |
| Decline | 2323 |
| Unchanged | 132 |
Numbers to track
| Indices Name | Latest | % 1D | % YTD |
| Dow Jones (US) | 39,070 | 0.0 % | 3.6 % |
| 10 Year Gsec India | 7.0 | 0.3 % | (1.8) % |
| WTI Crude (USD/bbl) | 78 | 1.1 % | 10.4 % |
| Gold (INR/10g) | 71,782 | 0.6 % | 7.0 % |
| USD/INR | 83.27 | 0.0 % | 0.3 % |
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