Sensex Daily Performance: What You Need to Know

Introduction

The Indian stock market benchmarks, the Nifty 50 and the Sensex, experienced a day of high volatility on Monday, May 27, 2024. After reaching fresh record highs in intraday trading, both indices closed the day flat, influenced by profit booking at higher levels and mixed global cues. This article provides an in-depth analysis of the day’s market performance, sectoral indices, key gainers and losers, and expert insights into the near-term outlook.

Market Performance Overview

Sensex and Nifty 50 Movements

• Sensex: Closed 20 points lower at 75,390.50, a 0.03% decrease.
• Nifty 50: Ended 25 points down at 22,932.45, a 0.11% drop.

Sensex & Nifty Intraday Highs

• Sensex: Reached a record high of 76,009.68.
• Nifty 50: Achieved a new peak of 23,110.80.

Closing Summary

Despite the initial optimism and record-setting performance, both indices faced selling pressure due to profit booking at higher levels. This led to marginal losses by the end of the trading session.

Factors Influencing the Market

Profit Booking at Higher Levels

Investors opted to book profits at the peaks, wary of potential market corrections ahead of significant upcoming events such as the Lok Sabha election results and the release of Q4FY24 GDP data.

Mixed Global Cues

Global market signals were mixed, contributing to the cautious approach adopted by investors.

Volatility Spike

India’s Volatility Index (VIX) surged nearly 7%, reaching 23.19. This marks an over 80% increase in volatility for May 2024, reflecting heightened market uncertainty.

Sectoral Indices Performance

Top Performing Sectors

• Nifty Bank: Increased by 0.63%.
• Nifty PSU Bank: Rose by 1.33%.
• Nifty Private Bank: Up by 0.54%.
• Nifty Realty: Gained 0.85%.

Underperforming Sectors

• Nifty Media: Declined by 0.97%.
• Nifty Metal: Dropped by 0.62%.
• Nifty Oil & Gas: Fell by 0.55%.

Key Market Movers

Top Nifty 50 Gainers

• Divi’s Labs: Increased by 2.99%.
• IndusInd Bank: Up by 1.39%.
• Adani Ports: Gained 1.17%.

Top Nifty 50 Losers

• Adani Enterprises: Decreased by 2.66%.
• Wipro: Dropped by 2.17%.
• Grasim: Fell by 2.09%.

Heavyweight Stock Performance

• Reliance Industries, ITC, and Mahindra: These stocks were major drags on the Nifty 50.
• HDFC Bank, Axis Bank, and Larsen & Toubro: Provided significant support to the index.

Market Sentiments and Expert Insights

Investor Sentiments

The market sentiment is cautious as investors brace for the Lok Sabha election results and Q4FY24 GDP data. This cautious approach is reflected in the profit booking at record levels.

Expert Opinions on sensex and nifty

Vinod Nair, Head of Research at Geojit Financial Services

Nair emphasized that the market is facing resistance at the 23,000 level due to profit booking by investors. He highlighted the positive triggers in the market, such as better earnings growth and expectations of a revival in private capital expenditure.

Rupak De, Senior Technical Analyst at LKP Securities

De remains positive about the near-term outlook, noting that the index is above crucial moving averages. He pointed out key support levels at 22,900 and potential resistance at 23,000-23,050.

Shrikant Chouhan, Head of Equity Research at Kotak Securities

Chouhan observed a bearish candle formation on daily charts, indicating temporary weakness. He suggests a strategy of buying on intraday corrections and selling on rallies for day traders. Key support levels are identified at 22,800-22,735 and resistance areas at 23,100-23,175.

Conclusion

The Indian bourse experienced a tumultuous session, culminating with the Sensex and Nifty 50 closing largely unchanged despite reaching unprecedented zeniths. Profit-taking at elevated levels coupled with heterogeneous global signals shaped the market’s trajectory. Sectoral indices exhibited varied outcomes; financial and realty segments outshone others, whereas the media, metals, and oil & gas sectors underperformed. Analysts recommend a vigilant yet optimistic stance in the short run, with pivotal support and resistance thresholds directing market dynamics.

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