Investors await Fed Chair Powell's speech

Mumbai, May 14: India's CPI inflation rate hits an 11-month low, while the anticipation of rate cuts towards its all-time high. Despite this apparent climb, increased volatility lurks beneath the surface, signaled by the India VIX breaching the 20 level.

“Investors await Fed Chair Powell's speech and key US inflation data, while technical analysis suggests bullish momentum with the Bullish Hammer candlestick pattern,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Corporate earnings flood in, with notable reports from Zomato, DLF, and Jindal Steel, alongside surging copper prices. Trade recommendations favour buying with a top stock pick on AUROBINDO PHARMA MAY FUTURES, driven by momentum.

On Monday, the benchmark indices experienced a volatile trading session. After a roller coaster activity, the Sensex was up by 112 points. Among sectors, the Auto and PSU Bank indices lost the most, shedding over 1 percent, whereas the pharma index outperformed, gaining 1.80 percent.

From a technical perspective, after an early selloff in the first half, the market found support near 71,900 and reversed sharply. From the day's lowest point, the benchmark indices bounced back over 959 points.

“We believe that the index has formed a reversal formation (Hammer) on daily charts and as long as it continues to trade above 71,800 the pullback formation is likely to continue,”says Shrikant Chouhan, Head-Equity Research.

On the higher side, the index could find resistance near 73000-73100 levels if the market manages to sustain above the 20-day SMA (Simple Moving Average). On the other hand, failure to sustain above 73,100 may drag the indices to 72,800 or 72,500 levels.