Stock Market Report Nifty Outlook For Tomorrow: May 27, 2024

Overview

Today's trading session on Indian equity indices saw a mixed performance with Bank Nifty showing significant activity and Nifty50 closing on a flat note after an initial rally. Key levels of support and resistance were tested across various indices, influencing market sentiment and investor actions.

Bank Nifty

Bank Nifty opened strong, surpassing the 49,000 resistance level. However, it faced substantial selling pressure in the 49,600-49,800 range, establishing 49,600 as a new resistance level. Notable put writing at the 49,000 strike price signals robust support at this level. The overall sentiment remains bullish, and a buy-on-dip strategy is recommended with a stop loss at 48,900. If Bank Nifty closes above 49,600, it could potentially move towards the 50,000 mark.

Key Levels:

• Support: 49,000
• Resistance: 49,600, 50,000
• Stop Loss: 48,900

Nifty50

Nifty50 began the week at a new high of 23,039, driven primarily by banking sector gains. However, the index faced profit-booking pressure in the last session, leading to a close at 22,932, down by 24 points. A bearish candle formed at record levels suggests a possible retest of the strong support at 22780, with immediate resistance at 23110.

Key Levels:

• Support: 22,780
• Resistance: 23,110

Market Sentiment

The overall market sentiment remains positive, bolstered by better earnings growth, expectations of a revival in private capital expenditure (capex), and a reduction in Foreign Institutional Investors (FII) selling intensity. Upcoming economic data, including India's Q4 GDP and US inflation figures, will likely influence market direction in the near term.

Sectoral Performance

• Top Performing Sectors: Banking, Realty, and Information Technology (IT) indices, each gaining 0.5%.
• Underperforming Sectors: Oil & Gas, Power, and Media sectors, down by 0.5-1%.

Equity Indices Summary

• Sensex: Down 19 points or 0.03% to 75,390
• Nifty: Down 24 points or 0.11% to 22,932

Top Gainers and Losers

Gainers:

• Divis Labs
• IndusInd Bank
• Axis Bank
• LTIMindtree
• Adani Ports

Losers:

• Adani Enterprises
• Wipro
• Grasim Industries
• ONGC
• SBI Life Insurance

Broader Market Indices

• BSE Midcap: Up 0.6%
• BSE Smallcap: Ended flat

IPO Update: Awfis Space Solutions

Awfis Space Solutions' Initial Public Offering (IPO) witnessed strong investor demand, with the issue being subscribed 76.43 times on the final day of bidding. The IPO, valued at Rs 599 crore, includes a fresh issue of shares worth Rs 128 crore and an Offer-for-Sale (OFS) of 1,22,95,699 equity shares by existing shareholders. The price band was set at Rs 364-383 per share.

Subscription Details:

• Non-Institutional Investors: 110.37 times
• Retail Investors: 46.27 times
• Qualified Institutional Buyers (QIBs): 70.19 times
• Employee Segment: 20.93 times

Conclusion

Today's session highlighted key resistance and support levels across indices, with the banking sector playing a pivotal role in market movements. Investors are advised to watch the upcoming economic data releases closely, as they will likely provide further market direction. The overall bullish sentiment and strong IPO interest indicate sustained investor confidence in the market's growth potential.