The Indian equity market snapped a four-day winning run and ended lower on May 31 amid selling across the sectors barring IT, realty, and pharma.
At close, the Sensex was down 346.89 points or 0.55% at 62,622.24, and the Nifty was down 99.40 points or 0.53% at 18,534.40.
On the back of weak global cues, the domestic indices opened on a negative note and extended the losses as the day progressed, dragging Nifty below 18,500. However, buying in realty, healthcare, and information technology shares trimmed some intraday losses.
The statistics ministry will release Gross Domestic Product (GDP) data for January-March and the first provisional estimate for 2022-23 GDP later today.
Stocks and Sectors
ONGC, Reliance Industries, Axis Bank, SBI, and HDFC were among biggest losers on the Nifty, while gainers included Bharti Airtel, Kotak Mahindra Bank, Britannia Industries, Sun Pharma, and SBI Life Insurance.
Except Information Technology, realty, and healthcare all other sectoral indices ended in the red.
The BSE midcap and smallcap indices rose 0.5 percent each.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 72,488.99 | -454.69 | -0.62% |
| Nifty 50 | 21,995.85 | -152.05 | -0.69% |
| Nifty Bank | 47,069.45 | -415.35 | -0.87% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Bharti Airtel | 1,265.75 | 49.30 | +4.05% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Apollo Hospital | 6,074.15 | -260.60 | -4.11% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Infra | 8324.40 | -2.60 | -0.03% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 52825.50 | -576.80 | -1.08% |
A long build-up was seen in Torrent Pharma, Dixon Technologies and PI Industries, while a short build-up was seen in ONGC, NTPC and SBI Cards.
Among individual stocks, a volume spike of more than 500 percent was seen in Torrent Pharma, PI Industries and Indus Towers.
Bharti Airtel, Indian Oil Corporation, Arvind, Godrej Consumer Products, Jindal Saw, Ujjivan Small Finance Bank were among the stocks that touched their 52-week high on the BSE.
Outlook for June 1
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty opened on a weak note and traded with a negative bias throughout the day ultimately closing the day down ~100 points. On the daily charts, we can observe that the Nifty has filled the gap area 18500 – 18580 formed on 29th May and held on to that support zone.
We believe that the Nifty is in the process of retesting the breakout it provided last week from the zone of 18000 – 18400. The hourly momentum indicator has reached the equilibrium line indicating that the consolidation may have matured, and it can start a new cycle on the upside.
Overall, we continue to maintain our positive outlook on the index for a target of 18800 from a short-term perspective. In terms of levels, 18460 – 18400 shall act as the crucial support zone while the hurdle zone is placed at 18660 – 18700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Profit-taking was overdue for sometime and investors offloaded their holdings in metals, realty and energy stocks on the back of weak Asian and European market cues. Traders also decided to keep a low profile ahead of the likely decision on the US debt agreement over raising the debt ceiling, as the outcome would provide some hint to the markets over the near-term direction.
Technically, on daily charts the Nifty has formed a reversal formation which is largely negative. However, after an intraday sell off the index took support near 18480 and bounced back sharply. As long as the market is holding 18480, the positive sentiment is likely to continue and above the same, the market could move up till 18600-18650. On the flip side, a fresh sell off is likely only after the dismissal of 18480. Below which, the index could slip till 18400-18375.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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