Market outlook for 6th May
The market closed mixed due to buying in banking, IT, realty and auto stocks. The market remained under pressure today due to heavy fall in oil and gas, electricity, consumer durables and capital goods stocks.
Market today: India's benchmark Sensex and Nifty indices closed flat at the end of the trading session after opening nearly 0.5 per cent higher amid selling in PSU shares. Today Sensex closed 17.39 points or 0.02 percent higher at 73,895.54 and Nifty fell 33.15 points or 0.15 percent closed at 22,442.70. About 1,294 shares advanced, while 2,627 shares declined and 172 shares remained unchanged.
Kotak Mahindra Bank was the top gainer of Nifty with a gain of more than 5 percent. It was followed by Tata Consultancy Services and Hindustan Unilever, which gained 2.1 percent and 1.8 percent respectively. At the same time, among the falling shares, Titan Company Limited fell by more than 7.2 percent. This is the sharpest decline in 22 months after weak fourth quarter results. SBI suffered a loss of 2.9 percent and NTPC suffered a loss of 2.31 percent.
Talking about sectoral indices, Nifty Realty Index rose by 2.76 per cent. Among the fallers, Nifty PSU Bank index fell 3.66 per cent, Consumer Durables, Oil & Gas declined 2.55 per cent and 1.75 per cent.
How can the market move on May 7?
Vinod Nair of Geojit Financial Services says that due to the tightening of project financing rules by RBI, poor performance of PSU banks was seen. In such a situation, Sensex-Nifty were seen moving in the range. Mid and small caps also remained under pressure due to concerns over expensive valuations and profit booking. If we look at the global front, weak US payroll data has increased the expectations of rate cut by the US FED. Investors will be closely watching statements from US FED officials this week to gauge what lies ahead on monetary policy.
Prashant Tapse of Mehta Equities says that the market closed mixed due to buying in banking, IT, realty and auto stocks. The market remained under pressure today due to heavy fall in oil and gas, power, consumer durables and capital goods stocks. Amid uncertainty over delay in rate cuts and inflation remaining high, investors are likely to trade cautiously with long-term bets on select stocks.
Shrikant Chauhan of Kotak Securities says that on the daily chart, Nifty has formed a bearish candle and on the intraday chart, it is maintaining a lower top formation. This is largely a negative sign. In such a situation, the short term trend of the market still remains weak. Now, 22600/74400 will prove to be a trend decider level for traders. As long as the market is trading below this, there is a possibility of it slipping to 22300-22250/73500-73350. On the other hand, above 22600/74400 the trend may change and the market may bounce up to 22700-22735/74700-74800.
Ajit Mishra of Religare Broking says that the sharp rise in volatility index India VIX has spoiled the market sentiment. With increasing volatility, pressure on Nifty will probably continue. However, the improvement in US markets and the strength of some leading stocks have offset some of the losses so far. But the weakness in the market will increase if Nifty goes below 22,400. In such a situation, traders are advised to maintain a cautious approach and focus on selected stocks only.