Indian Stock Market: Nifty Closes Above 23,900 Amid Volatility

Indian Equity Markets Experience Range-Bound Activity Amid Geopolitical Uncertainty

Indian equity markets witnessed a range-bound session on May 27, as investors remained cautious due to persistent geopolitical uncertainty surrounding the US-Iran situation. Despite easing crude oil prices, the benchmark indices erased opening losses and oscillated between gains and losses before ending marginally lower.

The Sensex was down 141.90 points or 0.19 percent at 75,867.80, while the Nifty was down 6.55 points or 0.03 percent at 23,907.15. Selling pressure in banking, IT, and oil & gas stocks capped the upside, while gains in power, metals, telecom, auto, and media counters provided support to the broader market.

Broader indices outperformed the main indices, with the Nifty Midcap index rising 0.4%, and the Smallcap index ending with marginal gains. The market will remain shut on May 28 (Thursday) on account of Bakri Id.

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The Indian rupee recovered from the intraday low of 95.79 and ended flat at 95.69 per dollar versus the previous close of 95.68.

Major gainers on the Nifty included Hindalco Industries, Power Grid Corp, Tata Motors Passenger Vehicle, Eternal, and NTPC, while losers were ONGC, ITC, HDFC Life, HDFC Bank, and Wipro.

On the sectoral front, media, power, capital goods added 3% each, while auto, metal, telecom up 1% each, and selling was seen in the IT, FMCG, banking, and oil & gas names.

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Nearly 160 stocks touched their 52-week high on the BSE, including AIA Engineering, Usha Martin, HFCL, Granules India, Hindalco Industries, CG Power and Industrial Solutions, and others.

In stock-specific action, HG Infra Engineering shares gained nearly 2% after the company declared as a qualified bidder by REC Power Development and Consultancy, Coal India shares up 1% as the Government of India to divest up to 2% stake via OFS, TVS Srichakra shares gained 12% on robust earnings.

However, shares of Landmark Cars slipped 5% despite a 10-fold jump in quarterly profit to Rs 15.03 crore, and AstraZeneca shares fell 4% as Q4 net profit declined 23%.

Zen Technologies climbed 5% on the launch of an anti-drone smart border system, and Gillette India shares jumped 5% after Q4 profit rose by 21.4%.

The outlook for May 29 suggests a narrow-range activity, with the Nifty ending 7 points lower while the Sensex was down by 142 points. The Media index outperformed, rallying over 3 percent, whereas the Capital Market index was the top loser, shedding 1.60 percent.

Technically, the market hovered between the 23,850/75,700 to 23,980/76,200 range and formed a small candle on the daily charts, indicating indecisiveness between the bulls and the bears.

Shrikant Chouhan, Head Equity Research, Kotak Securities, views the short-term market texture as positive but notes that a fresh uptrend rally is possible only after the dismissal of 24,000/76,200. Post a 24,000/76,200 breakout, the market could move up to 24,200-24,250/76,800-77,000.

On the flip side, for Nifty, below the 20-day SMA (Simple Moving Average) or 23,850/75,700, selling pressure is likely to accelerate. Below this level, the market could retest the 50-day SMA or the 23,700-23,650/75,200-75,000 levels.

Vatsal Bhuva, Technical Analyst at LKP Securities, notes that the Nifty 50 recently witnessed a breakout above the 23,800 congestion zone on the daily chart, indicating improving momentum in the index. However, profit booking has been visible during the last two trading sessions following the recent rally.

On the derivatives front, both call and put writers remained active, with significant call writing at the 24,000 strike establishing it as a strong resistance zone, while aggressive put writing at 23,900 indicates immediate support.

Overall, technical and derivative data suggest a sideways to mildly positive trend for the upcoming sessions. On the levels front, 23,800 is likely to act as immediate support, while 24,000-24,100 remains a strong resistance zone. Positional support for the index is placed at 23,650 levels.

Nifty Bank recently witnessed a consolidation congestion breakout on the daily chart and successfully reclaimed its 20-day and 50-day SMA, indicating improving momentum in the index. However, mild profit booking has been visible during the last two trading sessions following the recent rally.

Despite this, the overall structure remains positive as long as the index sustains above the 54,400 zone along with its key short-term and mid-term moving averages.

On the levels front, 54,500-54,400 is expected to act as a strong support zone, while resistance is placed around 55,500-55,800. A sustained breakout above resistance could open upside potential towards 56,200 and 56,500 levels.