63,050 immediate breakout level for bulls
Above which the index could rally till 63,300-63,400; On the flip side, below 62,700, selling pressure is likely to accelerate, further decline could drag index till 62,500-62,400
image for illustrative purpose
The benchmark indices on Tuesday witnessed narrow range activity. BSE Sensex was up by 123 points. Among sectors, buying was seen in Media and selective private bank stocks, whereas metal stocks witnessed intraday profit booking at higher levels.
Technically, on daily chart, the index has formed small body candle, which is clearly suggesting indecisiveness between bulls and bears. The intraday formation also suggesting continuation of range-bound activity in the near future.
“For the bulls now, 63,050 would be the immediate breakout level, above which the market could rally till 63,300-63,400,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, below 62,700 the selling pressure is likely to accelerate. Below which, the index could slip till 62,500-62,400.
S Ranganathan, Head of Research at LKP securities, says: “On a day when the Volatility Index dropped below 12, it was an eventful trading session on May 29, as the month of May has witnessed cash market volumes surging towards a six-month high as the return of FIIs pepped up domestic investors in search of Alpha in a month which defied the usual ‘Sell in MAY and Go Away’ rhetoric.”
As markets shrugged away inflation, supply-chain disruptions and a slowdown in certain discretionary spends, buoyant FII inflows of Rs450 billion since April has powered the Bank Nifty to its yearly-high on May 30 ahead of the MSCI rejig today.
