28 May , 2024 By : Debdeep Gupta
The Sensex and Nifty both declined by 0.2 percent and hit their day's lows around noon on May 28, as volatility increased. Except for Nifty Pharma which was up 0.3 percent, all sectoral indices were in the red.
India VIX, also known as the fear gauge, rose over 5 percent to 24.5.
At 12.46 pm, the Sensex was down 82 points or 0.1 percent at 75,308 and the Nifty 50 was down 22 points at 22,909. Oil and gas, and power stocks were the major laggards, dragging the Nifty 50 down.
The broader also witnessed heavy selling pressure with both BSE Midcap and Smallcap falling over 1 percent.
In the previous session, Nifty 50 tested the 23,100 level but failed to maintain its gains and ended flat. "Today, we expect Nifty to consolidate around the 23,000 level as both the 23,000 Call and Put options have substantial open interest," said Shrey Jain, Founder & CEO of SAS Online.
ONGC and NTPC were the worst-performing stocks on the Nifty 50, each dropping by 1.4 percent.
HDFC Life and Divi's Labs were the top gainers on Nifty around noon, up 2.3 percent each. Divi's Labs shares extended gains from the previous session wherein the stock had gained over 3 percent on better-than-expected performance in Q4 FY24.
Fundamental View
"As we approach the election results a bit of nervousness is visible in the market," said V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services. He expects the uncertainty-led nervousness to continue.
"A high possibility is the market getting a clue of the election results earlier than June 4. This can happen any time and trigger a big move in the market," Vijayakumar said.
Technical View
Anand James, Chief Market Strategist at Geojit Financial Services expects bargain buying to re-emerge as long as Nifty stays above 22,800. He does not expect the upswing to gain momentum as long as the 23,035 level stays intact.
Key Nifty gainers
Divis Labs, HDFC Life, SBI Life, Dr Reddys Labs, Hero Motocorp
Key Nifty losers
Adani Ports, Coal India, BPCL, Power Grid, ONGC
Key Sensex gainers
HUL, TCS, Asian Paints, M&M, UltraTechCement
Key Sensex losers
Power Grid, NTPC, Tata Motors, Tech Mahindra, Tata Steel
Stock moves
Marksans Pharma: Shares gained over two percent after the pharma player received the UK health regulator's nod to market its new oral solution.
National Aluminium Company: Shares jumped 6 percent after the PSU reported strong earnings for the quarter ended March 2024.
0 Comment