India Stocks Outlook: Mkts may fall Thu, but losses seen limited

Informist, Wednesday, May 24, 2023

By Akshata Gorde

MUMBAI – Benchmark indices may fall more on Thursday, but losses are likely to be limited as the overall sentiment of market participants remains bullish, said analysts. The Nifty 50 is seen facing a resistance at 18460 points and finding support at 18200 points.

“Domestic markets have taken pause with Nifty 50 facing minor resistance at higher levels of 18400-18450 zones,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd. “However, the overall positive structure remains intact, with a view of buy on dips,” he added in a note.

Ajit Mishra, vice president of technical research at Religare Broking Ltd, echoed similar thoughts. “While the tone is still positive, we feel participants should limit positions and wait for further clarity,” he said.

Indices ended a volatile session in the red today, with India VIX closing 4% higher at 13.1125 points. Both the Nifty 50 and the 30-stock Sensex closed 0.3% lower at 18285.40 points and 61773.78 points, respectively.

Shares of banks and financial companies, which have a considerable weight in the indices, are seen largely dominating the downward move. Today, the Nifty Bank ended 0.6% lower at 43677.85 points. Going ahead, analysts are hoping for a rise in banking stocks as the index consolidating near life highs “doesn’t augur well time-wise”, said analysts. “In the coming few sessions, sustaining above the 43500-level will be critical to avoid any bearish moves,” said Viraj Vyas, technical and derivatives analyst at Ashika Stock Broking.

Investors would also take direction from minutes of the US Federal Open Market Committee’s May meeting, scheduled to be released later today. Apart from that, the second estimate of US GDP data for Jan-Mar, US unemployment insurance weekly claims report, and US weekly export sales data, is due Thursday. Investors also await the outcome of the ongoing US debt ceiling discussions.

Back home, shares of Oil India, Life Insurance Corporation Of India, National Aluminium Co, Phoenix Mills, Trident, and FSN E-Commerce are likely to react to their Jan-Mar earnings due after market hours today.

Shares of Page Industries, the exclusive manufacturer and seller of Jockey and Speedo brands of sports-wear and inner-wear in India, will announce its Jan-Mar earnings Thursday. The company is expected to see a sharp decline in its operating margins, expected to be down by over 6 percentage points to 17.78% from 24% in the year-ago period.

Shares of Zee Entertainment Enterprises, Steel Authority Of India, Indian Railway Finance Corp, Vodafone Idea, Triveni Engineering & Industries, Radico Khaitan, Emami, among others are likely to be in focus as the companies will release their March quarter earnings on Thursday. Shares of Kansai Nerolac Paints, Trent, and Kennametal India will trade ex-dividend Thursday. End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to [email protected]

Source: Cogencis