Informist, Friday, May 26, 2023
By Akshata Gorde
MUMBAI – Markets are likely to extend today’s gains next week as the Nifty 50 index crossed its crucial level of 18450 points today. Immediate support for the 50-stock index is seen at 18400 points and resistance at 18520 points.
Today, the Nifty 50 and Sensex closed 1% higher each at 18499.35 points and 62501.69 points, respectively. The buoyancy continued to the broader markets with all Nifty midcap indices at new record highs.
Analysts expect benchmark indices to head to lifetime highs hereon as the timely correction seems to be over. The index is now just 380 points or 2% away from its lifetime high. “The much-needed break out from ongoing consolidation was achieved today increasing the probability of indices hitting life highs now,” said Viraj Vyas, technical and derivatives analysts at Ashika Research.
Echoing similar thoughts, Prashanth Tapse, vice president at Mehta Equities said, “The market outlook remains optimistic, with the Nifty aiming for new highs while maintaining support at 18203 points. The major hurdles for the Nifty are anticipated to be at its all-time high of 18888 points.”
While all sectors ended in the green today, analysts have changed their view about banking stocks after the sad performance by the index in the past two weeks. Now the information technology sector stocks and shares of fast-moving consumer goods companies are expected to see positive momentum. Along with these, analysts also expect industry giant Reliance Industries to drive the market going ahead.
However, investors will eye banking stocks as Reserve Bank of India Governor Shaktikanta Das is slated to meet the board of directors of private sector banks on Monday.
Shares of Aurobindo Pharma, Balkrishna Industries, and GMR Airports Infrastructure will be in focus as the companies are slated to release their Jan-Mar earnings results on Saturday.
Shares of Adani Transmission, Indian Railway Catering And Tourism Corporation, Ipca Laboratories, Hikal, NHPC, and Torrent Power will also be eyed as the companies will detail their earnings on Monday.
With Jan-Mar earnings season nearing its end, the focus will now shift to macro data, and upcoming central bank policy meetings, said analysts. Tensions have been high in the US with the debt default date looming closer.
“Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy,” said Shrikant Chouhan, head of equities research at Kotak Securities, in a note.
Shares of Anand Rathi Wealth and IRB Infrastructure Developers might see some negative momentum Monday as the stock will traded without the value of its dividend. End
Edited by Akul Nishant Akhoury
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