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Now that last week's US FOMC meeting has provided clarity on another 50 basis point rate hike in the coming months, the market appears to be taking the future hikes with equanimity and will now reverse the bearish trend . Nifty rose for a third straight session on May 30, after positive global cues that China had eased Covid restrictions and strong Friday gains on Wall Street. Local factors boosting sentiment include the early arrival of the monsoon in Kerala, raising hopes of a beneficial impact on agricultural crops. European stocks rose on Monday after China eased some of the pandemic's tightest virus controls, fueling risk appetite for the economic recovery. Indian equities would have been expecting a recovery anyway, having consistently underperformed since early April 2022. Domestic stock market the Sensex and the NSE Nifty 50 index ended nearly 2% higher on 30 May 2022, along with global peers. Sensex closed 1,041 points, or 1.9% higher at 55925, while Nifty closed at 16661.
Benchmark indices almost closed at monthly highs. At Sensex, 26 out of 30 stocks were in the green, led by gains at Titan Company, Mahindra & Mahindra (M&M), Infosys, L&T, Tech Mahindra, HCL Technologies, Reliance Industries Ltd (RIL), among others. On the other side were Kotak Mahindra Bank, Sun Pharma, Dr. Reddy's Laboratories and ITC are the only laggards. Nifty Bank closed up 0.6%. Benchmark Indices were up 2% in afternoon trade today led by IT, Auto & state owned banks buoyed by global cues, a pause in the upward trajectory of the Dollar Index and early arrival of monsoon in the state of Kerala. Investors are buying into the recent free fall amid fears of a global recession and a further rise in oil prices. Technically, the Nifty has rallied almost 800 points over the past three days and cleared the 16500 resistance level, which is broadly positive. For traders, 16600 would be the key trend level, above which positive momentum is likely to continue to 16650 -16700. Below 16600 uptrend’s would be vulnerable. Any further retracement could see the index retest the 16550-16450 level. 16700-16900 level on the Nifty could be tough to breach in the near term.
Resistance: 16650, 16750, 16850
Support: 16550,
16450, 16350
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