Fuel price cut failed to fuel the Nifty rally!

Nifty Trader • May 23, 2022

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Index	Price	Change	% Chg
NIFTY 50	16214.70	-51.50	-0.32
NIFTY BANK	34247.60	-28.80	-0.08
BSE SENSEX	54288.61	-37.78	-0.07

Daily closing price, change and % change of benchmark indices.

The Fuel price cut failed to fuel the Nifty rally!

The market started on a positive note and remained in green thorough out the day, but towards the end erased all gains to close in the red. The cut in fuel prices failed to ignite the rally in the market. Nifty bulls laked conviction and could not maintain the momentum of Friday.

The Nifty 50 closed at 16,214.70, down 51.45 points or 0.32 per cent. Though it recorded an intraday high of 16,414.70 before closing in the red.

For the first time after five trading sessions, the market breadth turned in favour of decliners. The advance-decline ratio was 0.64. The volatility index India Vix is back to the last week’s levels as it rose 1.28 per cent to close at 23.40. Meanwhile, the FII were net sellers today.

On the economic front, the government announced a cut in excise duties on petrol and diesel, increased subsidy on LPG under the Ujjwala scheme and levied export duty on certain steel products.

Nifty Market Action
Advancers – 849 Decliners – 1325
52Wk High – 32 52Wk Low – 45
High Band Hitters – 116 Low Band Hitters – 120
200d SMA – 17261
50d SMA – 16953 20d SMA – 16466

Nifty Top Gainers and Losers

Mahindra & Mahindra, Maruti, HUL, L&T and Wipro were the top gainers on the Nifty 50. JSW Steel, Tata Steel, Divis Lab, ONGC and Hindalco were the top losers. Most of the metal stocks took the hit of the export duty levy announced by the government.
View the list of all the Nifty 50 contributors.

Top Gainers

Company	Price	Change	%Chg
M&M	941	37.2	4.12
MARUTI	7891.15	304.55	4.01
HINDUNILVR	2380	54.05	2.32
LT	1641	30.9	1.92
WIPRO	467	7.4	1.61

Top five gainers in Nifty 50.

Top Losers

Company	Price	Change	%Chg
JSWSTEEL	547.75	-83.35	-13.21
TATASTEEL	1026.35	-144.25	-12.32
DIVISLAB	3892	-412.8	-9.59
ONGC	155.10	-6.8	-4.2
HINDALCO	414.45	-14.65	-3.41

Top five losers in Nifty 50.

Nifty Sectors and Broader Indices

On the sectoral front, it was a mixed show. All sectors closed in the red, except for Auto, IT and consumer durables. The Nifty Metal closed over 8.14 per cent lower, because of the levy of export duty on certain steel products.

Consumer Durables was up 0.84 per cent, while pharma was down 1.35 per cent. Realty and media were each down about 1 per cent.

The broader market was also under pressure as Midcap 50 was down 0.30 per cent, and the Small cap 50 was down 1.06 per cent.

Nifty Sectors – Notable Action
Auto +1.84%
IT +1.01%
Metal -8.14%
Oil & Gas -1.61%

Looking Forward

The levy of export duty on certain steel products may help in reducing the prices in the domestic market. However, steel stocks came under heavy pressure because of such a levy. Tata Steel is down -12.61%, JSW Steel is down -13.24%, and Jindal Steel is down 17.39 %.

Daily Pivots

S2	S1	R1	R2
16043	16129	16358	16501

Daily Nifty Pivots

16150 to 16350 is the Nifty trading range for tomorrow. The market is in a trading range or consolidation phase before making any move. The traders are sitting on the fence before taking any directional bets, wondering whether the monetary & fiscal punches delivered today are sufficient or too little too late.