31 May , 2024 By : Debdeep Gupta
Nifty and Sensex came off the day's high in late morning trade on May 31 as IT and oil and gas stocks weighed on the indices. Nifty IT fell nearly 1 percent, emerging as the worst-performing sector among the 13 major sectoral indices. TCS, Infosys, and Tech Mahindra led the losses in the Nifty IT index.
The indices had opened in the green on Friday, slightly pulling back from their oversold zone, according to Ruchit Jain, Lead Research Analyst at 5Paisa. Election-related nervousness and selling by FIIs had led the benchmarks to close in red for the previous five sessions. The monthly expiry of derivatives on May 30 caused Nifty 50 to close below its crucial support of 22,500.
At 11:00 am, Nifty was flat at 22,509, and Sensex was up 0.1 percent or 98 points at 73,983.
The broader market saw selling pressure, with the BSE Midcap and BSE Smallcap indices falling 0.6 percent and 0.3 percent, respectively.
India VIX, which rose from 10 to 24 in just a month, fell over 5 percent to 22.9 around noon.
Sectoral Trend
Nifty Realty was the top gainer amongst sectoral indices, rising 1.4 percent. This was followed by gains in Nifty Auto and Nifty Consumer Durables which rose 0.6 percent and 0.4 percent, respectively.
Meanwhile, Nifty IT and Nifty Media were the worst hit, declining by nearly 1 percent each.
Fundamental View
"The early arrival of the Southwest monsoon in Kerala, advancing into most parts of Northeast India, is the biggest positive catalyst today," said Prashanth Tapse, Senior VP (Research) at Mehta Equities. He expects the market to be highly volatile today.
Tapse advised traders to buy Nifty and Nifty Bank on dips.
He said that in May Nifty and its stocks lost significant gains as election jitters rattled the markets.
Technical View
"Today, we anticipate a volatile trading session for Nifty," said Shrey Jain, Founder and CEO of SAS Online. Jain expects the 22,200 level to serve as major support, while the 22,700 level to act as a resistance area.
Key Nifty gainers
Adani Enterprises, M&M, Bajaj Finance, Shriram Finance
Key Nifty losers
Hero MotoCorp, Bharti Airtel, Kotak Mahindra, BPCL
Key Sensex gainers
M&M, Bajaj Finance, L&T, Titan
Key Sensex losers
Kotak Mahindra, Bharti Airtel, Axis Bank, NTPC
Stock moves
Muthoot Finance: Shares surged over 4 percent after it reported a strong January-March quarter (Q4FY24) performance, boosted by strong loan demand and rising gold prices.
Sunteck Realty: Shares toppled 5 percent as investors rushed to take home partial profits after the company released its Q4 results.
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