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Market Closing Commentary

Benchmark indices staged a sharp intraday rebound on 20^th May after touching an intraday low of 23,397 during the first hour of the session. The Nifty recovered nearly 250 points from lower levels and eventually managed to close above the 23,600 mark, indicating buying interest emerging at lower levels. Crude oil prices witnessed some cooling off from higher levels; however, the Indian Rupee remained under pressure and continued to depreciate amid prevailing global uncertainties. At close, the Sensex gained 117.54 points or 0.16% to settle at 75,318.39, while the Nifty advanced 41 points or 0.17% to close at 23,659.00.

On the sectoral front, markets witnessed a mixed trend. Buying interest was largely seen in Nifty Oil & Gas, Auto, Realty, and Banking stocks, whereas Nifty Media, IT, and FMCG indices emerged as laggards during the session. The broader market also ended on a positive note, with the Nifty Midcap 100 index gaining 0.49%, while the Smallcap index closed marginally higher by 0.04%.

Nifty Outlook                            

Index in the daily chart formed a bullish candle with a lower high and lower low highlighting strong pullback after a gap down opening and closed near the day’s high. Index for the third time in the last six sessions has rebounded from near the key support area highlighting buying demand at lower levels.

 Going ahead, index to extend the last six sessions consolidation in the range of 23,200-23,900. Only a move above the recent breakdown area of 23,800-23,900, will signal a pause in the overall corrective trend. Index need to start forming higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 23,800-23,900 to signal strength. Nifty has key support at 23,200-23,000 levels being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601).

Bank Nifty Outlook

Index formed a bullish candle with a lower high and a lower low highlighting strong pullback after a gap down opening and closed near the day’s high. Index for the second time in the last three sessions has rebounded from near the key support area highlighting buying demand at lower levels. Index likely to consolidate in the range of 52,700-54,700. Bank Nifty holding above the key support area of 52,700-52,400 will lead to a pullback towards the recent breakdown area of 54,000 and 54,700.

However, Index need to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400-54,700 to signal a pause in the recent downtrend. Key support is placed at 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456).

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