Range-bound textures is likely to continue
Benchmark indices witnessed a range-bound movement on Tuesday, with Sensex down 53 points. Among sectors, the metal index outperformed, rising 3.7 per cent while private banks and select FMCG stocks saw intraday profit-booking at higher levels. Technically, the market bounced back sharply after a weak start but booked profits at higher levels
image for illustrative purpose
Mumbai, May 22: Benchmark indices witnessed a range-bound movement on Tuesday, with Sensex down 53 points. Among sectors, the metal index outperformed, rising 3.7 per cent while private banks and select FMCG stocks saw intraday profit-booking at higher levels. Technically, the market bounced back sharply after a weak start but booked profits at higher levels.
“Our view is that, as long as the market is trading between 72750 and 74200, the range-bound texture is likely to continue,” says Shrikant Chouhan, Head – Equity Research Kotak Securities.
Above 74,200, it may rally towards 74500-74700. On the other hand, below 72,750 the market may slip to 72500-72300 levels.
Early action at GIFT suggests a volatile day as sentiment wavers after Federal Reserve officials, including Governor Christopher Waller, reiterated the need for sustained inflation decline before considering rate cuts.
“Anxiety prevails ahead of the FOMC minutes release. Despite record FPI outflows and rising India VIX above 21, Metal stocks, buoyed by rising copper prices due to Chinese housing market interventions, are in focus,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
The falling WTI crude prices at $78 per barrel add a positive note. Notable stock pick: ADANI PORTS with targets at 1,401/1,425.
