The Indian market witnessed profit-taking at higher levels on May 24 but both the Sensex and the Nifty managed to close in the green. The S&P BSE Sensex shaved off more than 200 points from the intraday high but still ended 111 points higher at 50,651, while the Nifty50 rose 22 points to 15,197.
Sectorally, buying was seen in the public sector, power, oil & gas, and utilities, while profit booking was seen in telecom, metal, FMCG and consumer durables.
Positive global cues and the continuing fall in coronavirus cases helped Indian shares. For the Nifty, the next big resistance level to watch out for on the upside is 15,300 and 15,431.
“Due to a steady decline in fresh covid cases and hopes of the lockdown being lifted sooner has influenced the domestic market to extend its gains. Positive quarterly earnings and easing of asset quality woes helped banking stocks to attract buying interest, while mid and smallcap stocks outperformed,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“On the global front, the UK and the US manufacturing PMI data reported record-high numbers, however, investors are awaiting inflation data for guidance on monetary policy,” he said.
Here’s what experts think that investors should do on Tuesday, May 25:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
Technically, the Nifty formed a small-bodied candle on a daily scale, while forming higher high, higher lows from the last two sessions.
The index has to hold above 15,150 to witness an up move towards 15,300 then lifetime high of 15,431. On the downside, support exists at 15,000 and 14,900.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited
As long as the Nifty trades above 15,100, it is positive for markets from a short-term perspective. If the index sustains above 15100, we expect the index to gain momentum and that could lead to upside projection till 15,350-15,400.
Momentum indicators like RSI and MACD start showing signs of a short-term extended market. However, a divergence signal is not observed, alerting any potential deep correction.
Rohit Singre, Senior Technical Analyst, LKP Securities
The Nifty has a good support zone around 15,100-15,000 mark and any dip around the level, will again be a buying opportunity.
Investors can keep an overall stop-out level below 15,000 and the immediate resistance is placed at 15,250-15,330. We may see some profit-booking around these levels.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The 15,200-15,250 level is posing a short-term resistance for the Nifty. However, the trend continues to remain positive and we should be able to achieve 15,300. Until then, dips or intraday corrections can be used to enter long positions.
The support of 15,000 is an important one and as long as that holds on a closing basis, we are in a bullish market.
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