Market Metrics: Weekly Roundup Sensex: 73,961.31 Nifty 5 | Angel One

Market Metrics: Weekly Roundup
Sensex: 73,961.31
Nifty 50: 22,530.70
Nifty Bank: 48,983.95
Nifty Smallcap 100: 16,696.70
Nifty Midcap 100: 51,705.70

Market Performance Key Takeaways For The Week
The Indian equity markets began the week with positive momentum, reaching new record highs. However, this optimism was short-lived as profit booking and selling pressure emerged ahead of the election outcomes, resulting in the Nifty50 index slipping by 1.86 percent to settle at 22530.70 level.
The Nifty index experienced a sharp correction after two weeks of gains, settling above the 50% Fibonacci retracement of its rally from 21820 to a high of 23110. Volatility, driven by upcoming election results, led to caution and profit-taking. The index is at a crucial juncture with support at 22450-22400 and resistance at 22600-22650, and a key barrier at 22820-22850. Given the election uncertainty, markets are expected to remain volatile, so investors should exercise caution, implement risk management strategies, and consider hedged positions. Positive exit poll outcomes could boost the indices, highlighting the importance of careful positioning.
In contrast, the heavyweight Bank Nifty index exhibited resilience, holding its ground throughout most trading sessions despite Nifty's decline. Sellers showed signs of fatigue, allowing buyers to maintain control and resulting in a week of consolidation, with the index closing just below the 49000 level.
While Nifty's technical setup was disturbed, Bank Nifty showed fewer changes. The formation of a 'Doji' candlestick near its previous all-time high indicates exhaustion and tentativeness, likely due to the upcoming elections. On smaller time frames, the index appears to be in a sideways phase, as evidenced by the entanglement of its 20-EMA and 50-EMA on hourly charts. Given the election proximity, cautious trading is recommended, avoiding aggressive moves. Immediate support is found in the 48300-48000 zone, with notable resistance at 49500-49700.
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News Highlights For The Week
Paytm parent One97 Communications hit a 5% upper circuit in opening trade on May 31 after a block deal involving 75.20 lakh shares (1.2% stake) took place. The deal, executed at an average price of Rs 391 per share, was worth Rs 296.30 crore and represented a 3.6% premium to the stock's previous close of Rs 377.40.
BlackRock's iShares Bitcoin Trust has become the largest cryptocurrency fund globally, amassing almost $20 billion in assets since its U.S. debut in January, Bloomberg reported. It recently surpassed Grayscale Bitcoin Trust by holding $19.68 billion in assets.
S&P Global upgraded India's sovereign outlook from 'stable' to 'positive,' citing confidence in the country's economic reforms and infrastructure investments. The agency retained its 'BBB-' long-term and 'A-3' short-term credit ratings.
On Tuesday, the Reserve Bank of India introduced three initiatives: a mobile application for the Retail Direct scheme, a Fintech Repository, and the Pravaah portal to enhance accessibility. The Retail Direct mobile app, launched to increase retail investor participation in government securities, complements the RBI Retail Direct scheme initiated in November 2021.
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Disclaimer: https://bit.ly/3usSGoH
Sources: Angel One Research | Money Control | Money Control | Reuters | NDTV Profit | NDTV Profit
Date: May 31, 2024

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