The index spent another day in consolidation, remaining largely range-bound ahead of the monthly expiry. It ended the session with a loss of 74 points, closing at 24,752.
Profit booking extended into a second straight day; however, prices stayed within the previous trading range and managed to hold the prior session’s low.
This decline was largely driven by weakness in FMCG and Auto stocks.
Midcap and smallcap indices continued to outperform the benchmark, showcasing their resilience. The Nifty Midcap 100 closed flat, while the Nifty Smallcap 100 index gained 0.33%.
Amongst the sectors, Nifty FMCG, Auto, Healthcare, and Metal indices faced the most significant selling pressure. Conversely, Media, PSU Banks, and Nifty Financial Services Index managed to end the day in the green.
ITC share price slipped over 3% as British American Tobacco (BAT) pared stake by 2.5% via block deals.
Shares of Life Insurance Corporation of India Ltd. (LIC), India’s largest insurance company, surged as much as 8% in reaction to their quarterly results on Wednesday, May 28. LIC shares are back towards their original IPO price of ₹949, with nearly three-quarters of the 21 analysts remain bullish on the stock’s prospects, calling it a value proposition.
ITI shares climbed 10% today, in response to the company’s quarterly results. ITI nearly turned profitable in the March quarter, as its net loss narrowed to ₹4.4 crore. It must be noted that the decline in the firm’s net loss was also aided by an exceptional gain of ₹62.41 crore. The last instance of the bottomline being at these levels for ITI, was back in March of 2022, when it had reported a net profit of ₹356 crore.
Wednesday’s session also saw the listing of Belrise Industries. The stock gained 10% after the company saw a stable listing. Belrise listed at ₹100 on the NSE, at a premium of 11.11%.
Both domestic and foreign investors were net buyers in the cash market on Wednesday.
Siddhartha Khemka of Motilal Oswal expects the market to remain in a consolidation phase with selective buying, as investors weigh upcoming data and global developments.
On the global front, investors are keeping an eye out for two major triggers today. One being the minutes of the earlier FOMC meeting on May 6-7, which will be reported close to midnight, and the other being results of street darling Nvidia, which will be reported after market hours, meaning in the early hours of Thursday, Indian Standard Time.
What do the Nifty 50 charts indicate?
The Nifty spent another day in consolidation, with the index remaining largely range-bound ahead of the monthly expiry.
For the day of monthly expiry, 24,600 is likely to act as a strong support where 20 day EMA is placed. On the upside, 24,900-25,000 band would continue to offer resistance in the Nifty, said Nandish Shah of HDFC Securities.
Rajesh Bhosale of Angel One said that all eyes are now on the F&O expiry day, which could set the tone ahead. From a technical perspective, the Nifty continues to oscillate between the matching lows around 24,450 and the matching highs near 25,100.
“This range remains crucial, and any breakout beyond it could reignite momentum. However, testing these levels on the expiry day itself appears unlikely and breaking it would be a tough ask,” he said.
In the near term, Bhosale sees an immediate support at around 24,600, which also aligns with the 20DEMA. On the upside, the psychological 25,000 mark acts as immediate resistance. These two levels are expected to be pivotal during the expiry session, he added.
On the hourly chart, the index has slipped below the critical 21-EMA and 50-EMA, indicating a weakening trend in the near term, said Rupak De of LKP Securities. “Immediate support is seen at 24,700; a sustained move below this level could trigger further selling pressure.”
What do the Nifty Bank charts indicate?
The Nifty Bank ended the session at 55,417.00, up 0.12%. According to Om Mehra of SAMCO Securities, the index continues to trade within a well-defined consolidation zone that has held for nearly three weeks, with intraday moves failing to make a decisive breakout.
“The resistance remains near the upper band, around 55,900, which may limit the upside attempts. A breakout above 55,900 would signal fresh bullish momentum, with the potential to test lifetime highs. On the downside, 54,980 remains immediate support, followed by 54,400 if selling pressure intensifies,” Mehra added.
