Nifty Back in Green

Nifty Trader • May 26, 2022

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Index	Price	Change	% Chg
NIFTY 50	16170.15	144.35	0.90
NIFTY BANK	35094.90	755.40	2.20
BSE SENSEX	54252.53	503.27	0.94

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

Nifty Back in Green

After three consecutive days of losses, the Nifty 50 is back in the green. The reason for gains could be any; monthly options expiry day, short-covering or positivity because of the recent fiscal measures announced by the government, et al. The net result for the week is Nifty 0.58 per cent down. Let’s see what tomorrow brings?

The Nifty 50 was up 144.35 points or 0.9 per cent before closing at 16170.15. It recorded an intraday high of 16,204.45 and a low of 15,903.70. Though, today also, it made lower high and lower low but closed near day’s high, thus forming a bullish hammer candle, showing a positive bias.

After three trading sessions, today the market breadth turned positive on the NSE, with 1171 shares advanced, against 974 shares that declined, while 54 shares remained unchanged. Further, the volatility index softened 10.14 per cent and closed at 22.72.

Nifty Market Action
Advancers – 1171
Decliners – 974
52Wk High – 9
52Wk Low – 224
High Band Hitters – 50
Low Band Hitters – 201
200d SMA – 17261
50d SMA – 16928
20d SMA – 16322

Nifty Top Gainers and Losers

Tata Steel, Apollo Hospitals, JSW Steel, SBI, and HDFC Bank were the top gainers, while UPL, Divi’s Labs, Sun Pharma, Reliance and ONGC were the top losers.
View the list of all the Nifty 50 contributors.

Top Gainers

Company	Price	Change	% Chg
TATASTEEL	1049.90	50.8	5.08
APOLLOHOSP	3699	174.7	4.96
JSWSTEEL	552.35	23.9	4.52
SBIN	469.60	15.5	3.41
HDFCBANK	1369	40.2	3.03

Top five gainers in Nifty 50.

Top Losers

Company	Price	Change	% Chg
UPL	748.55	-15.45	-2.02
DIVISLAB	3455	-64.35	-1.83
SUNPHARMA	901.85	-9.35	-1.03
RELIANCE	2589	-23	-0.88
ONGC	151.55	-1.05	-0.69

Top five losers in Nifty 50.

Nifty Sectors and Broader Indices

All sectoral indices closed in the green, except for the FMCG.
Banks, metals and Financial services were the leading gainers. Metals staged smart recovery or maybe short-covering and closed up 2.67 per cent. The IT sector, which has been under pressure, closed up by 1.33 per cent as if the sector downgrade by Nomura didn’t affect the tech bulls.

The broader market followed the benchmark indices and closed in green. The Nifty Midcap 50 was up 1.26 per cent, and the Small-cap 50 was up 1.29 per cent.

Nifty Sectors – Notable Action
PSU Bank +3.16%
Metal +2.67%
Nifty Bank +2.20%
FMCG -0.22%

Looking Ahead

On a separate note, the Grasim’s foray into the paint business and announcement of doubling the Capex may negatively affect the share prices of paint companies in the short term. Shares prices of paint companies are already under pressure because of rising input costs and inflation. Shares to watch in this sector are Asian paints, Berger Paints, Kansai Nerolac, Akzo Nobel, and Indigo Paints.
Further, after J.P. Morgan, Nomura also downgraded the IT sector. The IT sector is witnessing pressure because of geopolitical issues, a rising dollar and high employee iteration rates. Shares to watch in this sector are Infosys, TCS, Wipro, Tech Mahindra, HCL Tech, etc.

Read our previous -Daily Insights- here
More Curbs, Hikes, Export Ban and Exemptions
Rising Inflation, Interest Rate and Volatility
Fuel price cut failed to fuel the Nifty rally!

Daily Pivots

S2	S1	R1	R2
15792	15981	16282	16394

Daily Nifty Pivots

15950 to 16250 is the Nifty trading range for tomorrow.
Tomorrow, a follow-through from bulls is required to make today’s gain meaningful. Given the fast-changing fiscal, monetary and geopolitical landscape, are bulls ready to take the plunge and hold positions over the weekend?

This article is only for educational purposes and is not an investment advice.