The bulls remained in control of D-Street on May 26, tracking positive trends in global markets, pushing the S&P BSE Sensex above 51,000 for the first time since March 10 while the Nifty50 ended above 15,300 for the first time since February 16.
The S&P BSE Sensex rose 379 points to end at 51,017, while the Nifty50 closed 93 points higher at 15,301.
Broader markets underperformed as the S&P BSE midcap index fell 0.14 percent and the smallcap index was up 0.69 percent.
Sectorally, buying was seen in realty, IT, consumer discretionary, auto, and finance stocks, while profit booking was seen in metals after Credit Suisse downgrade, followed by power and utilities stocks.
“Domestic markets started cautiously positive and witnessed a strong rebound as it gained momentum from expectations of another set of relief measures. The new stimulus package is expected to focus on boosting the worst-hit sectors like tourism, aviation, and hospitality along with MSMEs,” Vinod Nair, Head of Research at Geojit Financial Services said.
“Value buying was seen in the IT sector, while metals stocks remained in the correction phase due to muted international commodity prices,” he added.
In terms of technicals, the Nifty is set to retest its previous record high placed at 15,431, and any dips towards 15,250 would be a buying opportunity, say experts.
Here’s what experts think that investors should do on May 27:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
Technically, the Nifty formed a bullish candle on the daily scale with a long lower shadow and continued forming higher highs-higher lows of the last four sessions.
Now, the index has to hold above 15,250 to witness an up move towards the lifetime high of 15,431 and 15,500. On the downside, support exists at 15,200 and 15,100 zones.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Wednesday was a unique day for the market. At the start, the market went down but it recovered immediately and continued to consolidate near 15,300.
The good news is that the Nifty closed above 15,300, and the next biggest hurdle is 15,430, which the index may retest on May 27.
The breadth of the market was strong and on the positive part of the day, technology was in a bullish mood. Select financials also supported the Nifty.
If the Nifty opens towards 15,400-15,430 on May 27, we feel it is mandatory for investors to take profit on long positions. The big support for the market is near 15,250 and 15,150.
Rohit Singre, Senior Technical Analyst, LKP Securities
After two consecutive dull sessions, the index showed some traction and closed the day at 15,301 with gains of 100 points and formed a small bullish candle on the daily chart.
The index has again shifted its support to the 15,250-15,200 zone and as long as it holds above the said levels, the Nifty can see more strength and we may head towards previous swing highs.
The immediate hurdle is near 15,370-15,430 zone.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited
After a few days of the lacklustre movement, the market witnessed a positive trend. The expected levels of the market are likely to be in the 15,100-15,400 range.
It is going to be crucial for the short-term market scenario to sustain above 15,100. Momentum indicators like RSI and MACD support the trend and indicate potential upside from the current market level.
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