The Indian stock market has managed to stay in the green on May 25 as Covid cases continue to fall with daily new cases rising by 1.96 lakh yesterday, the lowest single-day increase since April 14.
Sensex is up 130.92 points, or 0.26 percent, at 50782.82, and the Nifty added 58.30 points, or 0.38 percent, at 15,256.
Among the sectors, metal, IT and FMCG are the top gainers adding a percent each.
“After getting past the resistance of 14,700 on a closing basis, the markets are in fine form. The level of 15,300 is the target that we need to keep an eye on. If we can close above this level, the next target for the Nifty would be 15,550-15,600,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
“A strong support for Nifty lies at 14,900-15,000 and till that is not pierced, we are in the bull territory and can continue buying on dips,” he added.
Among the metal names, JSW Steel was one of the top positive contributors, up 4 percent followed by Jindal Steel and Power, Hindalco Industries and Tata Steel.
According to Ashish Chaturmohta, Head of Derivatives and Technical Analysis, Sanctum Wealth Management, the rally will continue in metal space with a dip as steel prices are still near to the all-time high, and China reducing the production to curb carbon emissions is a long-term story for Indian Steel Companies.
Banks are under prssure amid profit booking with the top losers being HDFC Bank, State Bank of India, Axis Bank and IndusInd Bank among others.
“The market is able to maintain the gains of the last trading session and is trading in a range between 15,150 and 15,250. If the market is able to sustain the 15,150 levels we would be able to see the market till the levels of 15,400,” said Gaurav Garg, Head of Research, CapitalVia Global Research.
As the market continues to edge higher, over 300 stocks have hit new 52-week high on BSE including Finolex Cables, Colgate Palmolive, Birlasoft, Asian Paints, Presistent Systems, Concor, Mphasis and UPL among others.
On the other hand, 379 stocks have hit upper circuit on BSE including Unitech, JP Power, Coffe Day and Panacea Biotec among others.
Ajit Mishra, VP Research. Religare Broking expects volatility to remain high this week due to the scheduled derivatives expiry of May month contracts. Besides, participants will be closely eyeing the COVID-related updates as the reduction in the cases has raised hopes of gradual unlocking by the states.
“We feel our markets can outperform the global peers in near future, tracking the favourable developments on the local front. Nifty might take a breather around 15,300 followed by the hurdle at the record high,” he said.
“Almost all the sectoral indices are participating in the move but the focus would remain on banking and financial to maintain the prevailing momentum. We advise aligning trades in line with the trend and avoid contrarian positions,” he added.
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