Markets may be headed for positive close on May series expiry; here's what investors should do
The Sensex closed 380 points or 0.75% higher at 51,017, while Nifty 50 climbed 93 points or 0.61% to end at 15,301
Indian benchmark equity indices settled higher for the fourth consecutive session on May 26 led by gains in IT, auto and financial stocks as consistent decline in domestic Covid-19 cases improved investor sentiment. The Sensex closed 380 points or 0.75% higher at 51,017, while Nifty 50 climbed 93 points or 0.61% to end at 15,301.
Broader markets ended on a mixed note. The S&P BSE MidCap index dropped 0.14% compared with the S&P BSE SmallCap index, which advanced 0.69%. Barring Nifty Metals and Nifty PSU Bank, all other sectoral indices ended in the green. Metals came under selling pressure on falling prices and Credit Suisse downgrading the sector.
Bajaj finserv, Bajaj Finance Infosys, Grasim Industries, UPL, Maruti Suzuki, Wipro, and Indian Oil Corporation were among the top Sensex gainers. PowerGrid, JSW Steel, Hindalco, NTPC, Tata Steel, and Coal India were among the laggards.
Among other stocks, Mahanagar Gas surges over 4% on better-than-expected Q4 earnings. BPCL closed with a minor cut ahead of earnings & dividend announcement. Realty stocks continued to move higher on unlock trade; DLF was up over 4%.
The overall market breadth was extremely positive as 1,953 shares ended lower while 1,183 closed higher on the BSE.
Here’s how experts see markets trading on Thursday
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally positive. Nifty is now just a couple of points away from making a new historic high. If Nifty manages to sustain above 15,430 we should be looking at a sustained rally over the next several weeks or months. Previous swing highs do act pressure points and we still need to see Nifty trading above the previous swing high with an increase in volumes and range. The rally from April 22 lows has been a gradual affair. A very steady pace. The shape of the rally is like a bowl and is what we see as a rounding pattern. Once Nifty manages to trade and hold above 15,430-15,450 it is likely that Nifty will see a rally towards 16,000-16,200 over the next several weeks. Support for Nifty is at 14,900 as long as support at 14,900-14,950 holds our view of a sustained rally remains intact.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed at the highest since Feb 16, 2021. It also closed at almost the day’s high accompanied by a strongly positive advance-decline ratio. IT sector witnessed rotational buying while Metals stocks came under pressure as metal prices continued to remain soft globally after a dream rally. 15,336-15,432 is the next resistance band for the Nifty while 15,211-15,256 is the support band for the near term.
Ajit Mishra, VP – Research, Religare Broking
Markets resumed the trend and gained over half a percent amid mixed cues. Most of the sectors are participating in the move now however a trader needs to identify the right sector/stock as the markets are almost at record highs. Besides, the scheduled derivatives expiry may result in a volatile session on Thursday i.e. May 27. We thus advise keeping a check on naked leveraged positions and continuing with the “buy on dips” approach.