Markets Conclude in Negative Territory Amid Volatility, Nifty Maintains Above 24,000

Indian Markets End Weak on May 5, Nifty Closes Above 24,000

The Indian benchmark indices erased most of the previous session's gains and ended on a weak note on May 5, with the Nifty managing to close above the 24,000 mark amid a mixed trend across sectors.

The market started on a subdued note, but extended selling pressure in the afternoon dragged the Nifty to an intraday low of 23,882.05. However, buying at lower levels helped the indices recover part of the losses toward the close.

At close, the Sensex was down 251.61 points or 0.33 percent at 77,017.79, and the Nifty was down 86.50 points or 0.36 percent at 24,032.80.

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Meanwhile, broader markets outperformed the benchmark, with the Nifty midcap and smallcap indices ending with marginal gains.

On the currency front, the Indian rupee extended its losses for the fifth consecutive session, weakening to a fresh intraday record low of 95.43 per dollar, breaching its previous low of 95.33 recorded on April 30. The domestic currency eventually settled at 95.29 per dollar, registering a decline of 21 paise compared to the previous close of 95.08.

Among the major laggards on the Nifty were Jio Financial Services, ICICI Bank, Coal India, Tech Mahindra, and Eternal, while gains were seen in Mahindra & Mahindra, UltraTech Cement, Nestlé India, Bajaj Finserv, and Hindalco Industries.

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More than 140 stocks touched their 52-week high on the BSE, including Schneider Infra, HFCL, Adani Power, Emcure Pharmaceuticals, Adani Green Eneergy, Syrma SGS, Lloyds Metals, Adani Ports, Laurus Labs, Sai Life Sciences, Ather Energy, among others.

In stock-specific action, Dynacons Systems shares surged 13% after the company secured an order worth ₹750.82 crore from the Reserve Bank of India. EMS Limited gained 7% following a new order win worth ₹143.79 crore.

On the downside, Manappuram Finance was up 1% on returning to profitability in Q4. Aditya Birla Capital rose 3.6% after reporting a 30% increase in consolidated profit, while Aarti Industries slipped 5% despite strong earnings.

Meanwhile, Wockhardt jumped 9% after reporting a return to profitability in the fourth quarter and Meghmani Organics shares added 11% after getting approval to manufacture Nano DAP, Nano NPK and Nano Zinc.

Market Outlook for May 6

Rupak De, Senior Technical Analyst at LKP Securities, noted that Indian equities continued to trade weak as crude prices remained firm. On the daily chart, the Nifty has sustained below the 50EMA for eight consecutive sessions, keeping the bearish trend intact. The RSI is in a bearish crossover, indicating weak momentum.

However, a closer and more granular view of the Nifty chart suggests the possibility of a meaningful recovery from current levels. On the lower timeframe, the index has started forming higher lows, which might be an early sign of a potential reversal.

In the short term, the index may move higher with a potential upside towards 24,285–24,350. On the downside, support is placed at 23,880, below which weakness could intensify.

Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that today, the benchmark indices witnessed a volatile trading session. The Nifty ended 87 points lower, while the Sensex was down by 252 points. Among sectors, Capital Market and Defence indices rallied over 1 percent, whereas the Realty index lost the most, shedding 1.55 percent.

Technically, after an initial intraday dip, the market took support near 23,900/76,500 and registered some recovery. Currently, the market is witnessing non-directional activity. For day traders, 23,900/76,500 would act as an immediate support zone, while 24,100/77,200 or the 50-day SMA (Simple Moving Average) would be the key resistance area for the bulls.

A successful breakout above 24,100/77,200 could push the market up to 24,250-24,350/77,700-78,000, while below 23,900/76,500, the market could retest the levels of 23,800-23,750/76,200-76,000.