Market outlook for May 10th
Market News: Today in the broader market, BSE Midcap Index and BSE Smallcap Index have fallen by more than 2 percent.
Market to day: Heavy selling was seen in the market today on the day of Nifty weekly expiry. Today, except BSE Auto Index, there has been a decline in all sectors.
The market cap of BSE has decreased by Rs 7.56 lakh crore today. BSE's market cap declined by Rs 15.36 lakh crore in May.
There has been a decline of about 1.5 percent in Sensex and Nifty. Nifty has again slipped below 21950. Heavy selling has been seen in midcap and smallcap indices. Maximum selling has been seen in oil-gas, metal, FMCG and realty. The rupee strengthened by 1 paise and closed at Rs 83.51 per dollar.
Sensex fell 1062 points and closed at 72404. Nifty fell 345 points and closed at 21958. Bank Nifty fell 533 points and closed at 47488. Midcap fell 927 points and closed at 49109.
Today there was selling in 25 out of 30 Sensex stocks. There was selling in 43 out of 50 Nifty stocks. There was selling in 7 out of 12 shares of Bank Nifty.
How can the market move on May 10?
Arvinder Singh Nanda, Senior Vice President, Master Capital Services, says that due to uncertainty regarding the general elections, India's volatility index India VIX has increased significantly. He said that India VIX reaching 52 week high of 19 is a sign of increasing fear in the market.
In the broader market today, BSE Midcap Index and BSE Smallcap Index have fallen by more than 2 percent.
Gaurang Shah, Senior Vice President, Geojit Financial Services, says that a lot of volatility can be seen in Nifty 50 and Sensex. But more volatility is expected in the small-cap and mid-cap segments.
Gaurang Shah further said that the market should be prepared for stock and sector-specific fluctuations in view of the ongoing elections and weak Q4FY24 results.
Kunal Shah of LKP Securities says that the Bank Nifty index remained under bearish pressure today and went below the important level of 50-day exponential moving average (EMA) on closing basis. Now the next support for Bank Nifty is visible at 47,400.
If this support is also broken, it could slip towards 100-day EMA i.e. 47,050 points. At the same time, immediate registration is visible on the upside for Bank Nifty at 48,000.
Aggressive call writing has been seen at this level. Moving above this resistance level could trigger a short-covering rally in Bank Nifty towards 48,500 points.
Ajit Mishra of Religare Broking says that Nifty has fallen below the lower limit of its upward channel and also below the support of 50-day exponential moving average (DEMA) located around the level of 22,150.
The continued rise in the volatility index suggests that the current weakness may continue. Nifty may soon fall to the zone of 21,800-21,850.
Traders are advised to decide their positions keeping these conditions in mind and focus only on selected quality stocks.