Market outlook for May 17
With a slight decline in the volatility index, Nifty has managed to cross the resistance of 22,300. Now this rise can be seen increasing till the level of 22,600.
Stock market: Great buying was seen in the last hour on the day of Nifty weekly expiry. There was a sharp recovery in the market today from the low level.
Almost all the sector indices of BSE remained bullish. There was a rise of about 1 percent in the midcap index.
The midcap index has risen by more than 450 points. There was good buying in IT and realty shares today. The Consumer Goods Index rose more than 2 percent.
There was buying in consumer durables and largecap stocks. At the end of the trading session, the Sensex rose 677 points to close at 73,664. At the same time, Nifty rose 203 points and closed at 22,404.
While Bank Nifty rose 290 points and closed at 47,977. At the same time, midcap rose 446 points and closed at 51,153.
Today there was buying in 25 out of 30 Sensex stocks. Whereas buying was seen in 40 out of 50 stocks of Nifty.
There was buying in 7 out of 12 shares of Bank Nifty. On the other hand, against the dollar, the rupee closed at the level of Rs 83.50 per dollar without any change.
How can the market move in future?
Kunal Shah of LKP Securities says that today a strong return of bulls was seen in Bank Nifty. A jump of 1000 points was seen in this index intraday.
There is now immediate resistance for Bank Nifty at 48200 which is situated close to its 20-day moving average (20DMA).
If this resistance is broken, there may be short covering in Bank Nifty towards 49000 points.
On the downside, support for Bank Nifty is at 47600-47500. As long as this support continues, the rise will continue.
Talking about the market, Prashant Tapse of Mehta Equities said that there was a strong recovery in the market in the last trading session.
Due to which the market closed on the rise. At a time when FIIs are pulling out their money from domestic equities, the news of new stocks being added to the MSCI index comes. This is expected to bring new FPI investment.
Because of this, there is some happiness in the market today. On the election front, the buzz in the market is that the ruling BJP government will gain majority and form the government.
This means that policy reforms will continue in the future. The market has also received support from this.
Ajit Mishra of Religare Broking says that with a slight decline in the volatility index, Nifty has managed to cross the resistance of 22,300.
Now this rise can be seen increasing till the level of 22,600. Along with the signals received from the American markets, the participation of big players in banking and IT sector will prove important in future.
Traders are advised to focus on choosing better stocks and decide their strategy accordingly.