Taking Stock | Nifty Ends At Record Closing High On May F&O Expiry Day
Except for pharma and energy, all other sectoral indices ended higher with Nifty Bank, IT and PSU Bank indices adding 1-2 percent.
Ajit Mishra, VP – Research, Religare Broking:
Markets traded volatile and settled marginally in the green on the day of monthly expiry of May month contracts. The benchmark indices witnessed a firm start but profit taking at higher levels capped the upside as the day progressed. Meanwhile, volatile swings witnessed across the board wherein banking showed tremendous resilience while oil & gas and realty traded subdued and ended lower.
Markets are now eyeing announcements on unlocking by the states which is fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips” with focus on sector and stock selection.
Rohit Singre, Senior Technical Analyst at LKP Securities:
One more positive session witnessed & index given close at 15338 with minimal gains of 36 points and formed a doji sort of candle pattern on daily chart. On the immediate basis index has formed support near 14275 zone, any break below said levels we may see more profit booking in index towards 15200 zone which is another support on the downside, stiff hurdle still at 15430-15470 zone.
Vinod Nair, Head of Research at Geojit Financial Services:
Market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining covid cases. However, RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry.
RBI has noted a disconnect between the market and economy due to Covid. The equity market is valued based on its future earnings growth proposition, which is solid for India today. High liquidity does help the market and RBI has reaffirmed its supportive stance till the economy recovers.
Indian rupee ended higher by 19 paise at 72.58 per dollar, amid volatile trade saw in the domestic equity market on May expiry day.
It opened flat at 72.75 per dollar versus Tuesday’s close of 72.77 and traded in the range of 72.53-72.76.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Index has maintained above the 15300 level today. This should allow the index to move higher to levels closer to 15600. Any intra-day correction or dip can be utilized to accumulate long positions on the Nifty. We have a good support at the 15000 level and as long as we do not break this on a closing basis we are in bull territory.
Market Close: Benchmark indices ended marginally higher on May 27 supported by the IT and financial names.
The Sensex was up 97.70 points or 0.19% at 51115.22, and the Nifty was up 36.40 points or 0.24% at 15337.90. About 1657 shares have advanced, 1314 shares declined, and 121 shares are unchanged.
Shree Cements, SBI, Axis Bank, Kotak Mahindra Bank and Wipro were among the top gainers on the Nifty, while losers included HDFC, ONGC, IOC, Bajaj Finance and HUL.
Except Pharma and Energy, all other sectoral indices ended higher with Nifty Bank, IT and PSU Bank indices added 1-2 percent. BSE Midcap and Smallcap indices ended in the green.
Burger King India share price declined 7 percent on May 27 after the company reported its numbers for the quarter ended March 2021.
The company reported a loss of Rs 25.94 crore in Q4 FY21 against a loss of Rs 37.41 crore in Q4 FY20. Revenue rose to Rs 196.05 crore from Rs 190.99 crore in year-ago.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market continued to witness a lack of momentum and stayed in the range between 15225 and 15350. The short-term technical condition of the market appears like a sideways correction is in the process. While it is subject to further price action evolution, our research suggests it is prudent to wait for a decisive breakout above 15400 and technical factors to improve before going long in the market.
We retain our cautious stance and advise the traders to refrain from building a new buying position until we see further improvement and breakout above 15400.
Lupin announces achievement of key milestones for its MEK inhibitor compound:
Lupin today announced the achievement of key milestones for Lupin’s MEK inhibitor compound (LNP3794) that is planned for development by Boehringer Ingelheim in combination as potential targeted therapy for patients with difficult-to-treat cancers.
As part of the agreement, Lupin has received payment of USD 50 million from Boehringer Ingelheim for achievement of key milestones.
Lupin was quoting at Rs 1,203.40, up Rs 7.65, or 0.64 percent on the BSE.
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