May 21, 2024
Market Outlook: Nifty, Sensex gain, to be range-bound in short-term; uptrend vulnerable below 17,900
Indian benchmark equity indices, managed to close the weekly F&O expiry session in the green territory. The BSE Sensex closed above 61,300 and the NSE Nifty 50 settled above 18,000. However, profit taking in the banking,financials and auto heavyweights pared all the gains as the day progressed. Meanwhile, the broader indices outperformed the benchmark index and gained in the range of 0.7%-1%.
Markets Ahead: Global market influences domestic indices
Nifty couldn’t hold onto gains: Deepak Jasani, HDFC Securities
Data released Thursday showed that China’s January air passenger traffic rose 34.8% from a year earlier, suggesting that demand from the world’s largest importer of crude could bounce back relatively quickly after its decision to abandon its strict zero-COVID policy. Nifty rose as expected, but could not hold on to gains.
US economy resilient, fear of hawkish Fed caps gains: Vinod Nair, Geojit Financial Services
The domestic market absorbed the buoyancy in the global market, led by IT stocks, while upstream oil companies gained as a result of the slash in windfall tax. After robust jobs data, strong retail sales numbers in the US showed proof of resilience in the US economy amidst concerns over elevated inflation numbers. However, the gains were capped by worries that a stronger economy would attract a tighter monetary policy.
Nifty Technical View: Nifty formed bearish candle
Below 17,900, uptrend vulnerable: Shrikant Chouhan, Kotak Securities
On the technical front, a small bearish candle on daily charts is indicating a range bound activity in the near future. For the bulls, 17,950-17,900 would act as a key support zone while 18,150-18,200 would be the crucial resistance zone. However, below 17,900, the uptrend would be vulnerable.
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