Around noon on May 27, the Nifty and Sensex reached new highs, driven by the banking and IT sectors. Leading the gains were HDFC Bank, Divi’s Lab, and ICICI Bank, which made significant contributions to the Nifty 50.
Divi’s Lab shares experienced the highest increase on the Nifty 50, trading over 4 percent. This surge was prompted by the company’s impressive performance in the January-March quarter of FY24. As a result, brokerages have raised their price targets for the stock to reflect the strong earnings.
In the broader market, the BSE Midcap rose by 0.6 percent, while the BSE Smallcap saw a 0.1 percent increase.
Volatility remained high as the general election outcome approached, with India VIX rising by 5.3 percent to 22.9 around noon.
At 12.32 pm, the Sensex recorded a gain of 553 points or 0.7 percent, reaching 75,964. Similarly, the Nifty 50 rose by 140 points or 0.6 percent, reaching 23,097. Out of the total shares traded, 1,588 advanced, 1,810 declined, and 119 remained unchanged.
Sectoral Trend
Nifty Bank and Nifty IT recorded a growth of 1.4 percent and 0.9 percent, respectively, positioning them as the leading performers in the sectoral indices. Conversely, Nifty Energy and Nifty Media experienced a decline of 0.5 percent each.
Fundamental View
Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted six significant catalysts that are expected to drive potential volatility in the upcoming week. These include the exit poll on June 1, monthly F&O expiry on May 30, the release of US and India’s GDP data on May 30 and May 31 respectively, US PCE inflation data on May 31, and May auto sales data on June 1. Despite the closure of Wall Street on May 27 for Memorial Day, Tapse noted that Nifty traders remain confident, supported by positive investor sentiment surrounding the general elections and a decrease in oil prices.
Technical View
Deven Mehata, a Research Analyst at Choice Broking, stated that the Nifty 50 may discover support levels at 22,900, 22,850, and 22,800. He further mentioned that on the upside, 23,050 could act as an immediate resistance, followed by 23,100 and 23,200.
Key Nifty gainers
Divis Labs, IndusInd Bank, L&T, HDFC Bank, Adani Ports
Key Nifty losers
Wipro, ONGC, Eicher Motors, Adani Enterprises, Grasim
Key Sensex gainers
IndusInd Bank, HDFC Bank, L&T, Bajaj Finance, ICICI Bank
Key Sensex losers
Wipro, NTPC, Maruti Suzuki, Sun Pharma
Stock moves
Torrent Pharmaceuticals experienced a 7 percent surge in shares, with investors expressing enthusiasm over the company’s impressive Q4FY24 performance and promising growth prospects ahead.