On the back of advances in Telecom, Reality, and Auto stocks, Indian equities indexes reversed a six-day losing streak and finished the bumpy session up roughly half a per cent on Monday. Markets began cautiously but quickly gained pace, as traders were encouraged by Commerce and Industry Minister Piyush Goyal’s remark that the comprehensive trade deal between India and the UAE will help create massive employment opportunities and improve domestic economic growth.
The Nifty50 has formed a Doji pattern on the daily chart, reflecting indecision in the minds of market participants, according to Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas.
He expects the index to stay under pressure and test the March low of 15,671 as long as it trades below 16,000. “If the bulls do manage to take out 16,000 on a closing basis, the Nifty can take a leap towards 16,200-16,250 levels,” he said.
Sensex rose 180.22 points or 0.34% to 52,973.84 and Nifty was up by 60.15 points or 0.38% to 15,842.30 in the previous session. Sensex touched a high and low of 53,428.28 and 52,632.48, respectively. There were 18 stocks advancing against 12 stocks declining on the index. Nifty traded in a range of 15,977.95 and 15,739.65. There were 33 stocks advancing against 16 stocks declining, while 1 stock remained unchanged on the index.
The broader indices ended in green with the BSE Midcap index rising 1.51%, while the Small cap index was up by 1.15%. The top gaining sectoral indices on the BSE were Telecom up by 2.85%, Realty up by 2.59%, Auto up by 2.20%, Utilities up by 2.17% and Power up by 2.10%, while IT down by 0.58%, TECK down by 0.45% and FMCG down by 0.24% were the losing indices on BSE.
India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, rose 4.44% to 24.53 on Monday.
The trends on SGX Nifty indicate a positive opening for the index in India with an 11-points gain. The Nifty futures were trading at 15,865.20 on the Singaporean Exchange around 06:45 hours IST.
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Support and Resistance levels
The key support level for the Nifty is placed at 15,729, followed by 15,615. If the index moves up, the key resistance levels to watch out for are 15,967 and 16,092, according to pivot charts.
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The S&P 500 fell 15.88 points, or 0.4%, to 4,008.01.
The Dow Jones Industrial Average rose 26.76 points, or 0.1%, to 32,223.42.
The Nasdaq fell 142.21 points, or 1.2%, to 11,662.79.
The Russell 2000 index of smaller companies fell 9.24 points, or 0.5%, to 1,783.43.
Asian markets finished mixed on Monday. The Nikkei 225 gained 0.45% and the Hang Seng rose 0.11%. The Shanghai Composite lost 0.34%.
European markets finished mixed on Monday. The FTSE 100 gained 0.63%, while the DAX led the CAC 40 lower. They fell 0.45% and 0.23% respectively.
Major News Headlines
A day after billionaire Gautam Adani-led Adani Group acquired Switzerland-based Holcim AG’s cement business in India for $10.5 billion, the Adani family on Monday made an open offer to buy a 26% stake each in its two listed firms Ambuja Cements and ACC Ltd from public shareholders, reported PTI. The Adani Group through its Mauritius-based subsidiary Endeavour Trade and Investment has made an open offer at Rs 385 per share for Ambuja Cements Ltd and Rs 2,300 per share for ACC Ltd. For Ambuja Cements, Adani group has made an open offer to its public shareholders to buy up to 51.63 crore equity shares, representing 26% of the expanded share capital, aggregating to a total consideration of Rs 19,879.57 crore, reported PTI. For ACC Ltd, the Adani group has offered to acquire up to 4.89% shares held by public shareholders, representing 26% of the expanded share capital, aggregating to a total consideration of Rs 11,259.97 crore. This would be “subject to the receipt of the Required Statutory Approval,” it said.
Raymond Ltd reported over four times jump in its consolidated net profit to Rs 364.97 crore for the fourth quarter ended in March 2022, on the back of buoyant demand and strong consumer sentiments during the period. The company had posted a net profit of Rs 58.36 crore during the March quarter of the previous financial year. Revenue from operations grew 43.38% to Rs 1,958.10 crore during the March quarter as compared to Rs 1,365.66 crore in the corresponding period of the previous fiscal. Raymond recorded the “highest-ever revenue and profitability during the quarter”, the company said in a financial statement. Its total expenses stood at Rs 1,790.12 crore, up 33.36% in March 2022 quarter as against Rs 1,342.31 crore in the year-ago period. In a separate filing, Raymond said that its board in a meeting held on Monday recommended the payment of a dividend of 30% on the equity share capital, which is Rs 3 per equity share of the face value of Rs 10 for the financial year ended March 31, 2022.
MARVEL REALTECH PRIVATE LIMITED sold 1,10,814 shares in AKG Exim Limited at Rs 29.38 per share on the NSE.
SATHISH SRINIVAS NAYAK bought 4,53,000 shares in Asian Granito India Limited at Rs 69.76 per share on the NSE.
VISHESH GUPTA sold 125,00,000 shares in Integra Essentia Limited at Rs 0.10 per share on the NSE.
SHINE STAR BUILD CAP PVT LTD bought 106,37,500 shares in IRB InvIT Fund at Rs 52.04 per share on the NSE.
PALASH BANERJEE bought 69,990 shares in Kshitij Polyline Limited at Rs 28.00 per share on the NSE.
L7 HITECH PRIVATE LIMITED bought 1,00,000 shares in Libas Consu Products Limited at Rs 25.13 per share on the NSE.
KAVITA PARESHKUMAR MEHTA sold 3,35,000 shares in Likhitha Infrastructure Limited at Rs 283.01 per share on the NSE.
SUNFLOWER BROKING PVT LTD sold 1,17,000 shares in Sonu Infratech Limited at Rs 36.08 per share on the NSE.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1788.93 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 1428.39 crore in the Indian equity market on May 16, as per provisional data available on the NSE.
GNFC, Indiabulls Housing Finance, and Punjab National Bank are under the F&O ban for May 17. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.