The Indian equity benchmarks snapped their six-day losing streak to close higher in another volatile session on May 16, buoyed by buying across sectors except in information technology and FMCG segments.
At close, the Sensex was up 180.22 points, or 0.34 percent, at 52,973.84, and the Nifty was up 60.10 points, or 0.38 percent, at 15,842.30.
After a flat start to the week, the market remained in positive territory in the first half and witnessed some profit booking later in the day but managed to end the session in the green.
During the session, the Sensex and the Nifty touched a high of 53,428.28 and 15,977.95, respectively.
“Autos and banks helped benchmark indices stay in the green today as rising inflation and its impact on discretionary spending kept investors worried,” said S Ranganathan, Head of Research at LKP securities.
The broader markets witnessed keen interest in companies likely to post good numbers during the first quarter of the current fiscal. Diagnostic and pathology firms, however, saw profit-taking ahead of Q4 earnings on the “back of high competitive intensity”, he said.
Eicher Motors, Apollo Hospitals, NTPC, UPL and Bajaj Finance were among the top Nifty gainers. Losers included UltraTech Cement, Shree Cements, Asian Paints, Grasim Industries and ITC.
On the sectoral front, Nifty bank, auto, energy and PSU bank rose 1-3 percent. Selling was seen in pharma, IT and FMCG names.
Stocks and sectors
On the BSE, capital goods, bank, auto, realty and power indices rose 1-2.5 percent, while IT and FMCG indices ended in the red.
Broader markets outperformed the benchmarks, with BSE midcap and smallcap indices rising more than a percent each.
A long build-up was seen in Balkrishna Industries, Eicher Motors and Hindustan Aeronautics, while a short build-up was seen in Honeywell Automation, Metropolis Healthcare and Aditya Birla Capital.
Voltas, HDFC Bank, REC, Lupin, Dixon Technologies and Indus Towers were among the stocks that touched 52-week low on the BSE.
Among individual stocks, a volume spike of more than 200 percent was seen in Dr Lal Path Labs, ACC and Metropolis Healthcare.
Outlook for May 17
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty continues to consolidate in the narrow range, as it has failed to give any directional movement.
Sideways pattern may continue as long as the Nifty stays within a tight band of 15,800 and 16,000 on a closing basis.
A decisive breakout on either side may induce a decent move in the direction of a breakout.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
The spate of negative news has prompted investors to cut equity exposure. The benchmarks, which were going great guns, once again profit-booking saw the market pare most of the gains to end marginally higher.
There are concerns that rising interest rates to quell higher inflation could hurt growth and may result in a further correction.
The Nifty moved within 15,765-15,950 range and the texture of the chart suggests a continuation of the range-bound activity in the near future.
For the bulls, 15,950 would be the immediate resistance level and above which, a sharp intraday pullback rally to 16,000-16,100 is possible.
On the other hand, 15,750 could be the immediate support and below it, the index can slip to 15,700-15,600.
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.
Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes
