Indian benchmark indices opened little changed on Friday, May 22, with the Nifty 50 edging up 0.07% to 23,671.20 and the BSE Sensex gaining 0.1% to 75,260.39 as of 9:15 IST. According to reports from LiveMint, the market sentiment remained cautious after the US and Iran maintained opposing positions on Tehran's uranium stockpile and control over the Strait of Hormuz during talks on Thursday. However, US Secretary of State Marco Rubio indicated there had been 'some good signs' in the negotiations, providing some optimism to investors. The market experts noted that for the past six to seven trading sessions, the index has consolidated within the 23,800-23,300 levels, indicating a short-term sideways trend, with the crucial support zone around 23,300-23,100 levels.
As reported by LiveMint, Rajesh Palviya, SVP - Technical and Derivatives Research at Axis Securities, noted that the Nifty 50 has consolidated within the 23,800-23,300 levels for six to seven trading sessions, indicating a short-term sideways trend. The crucial support zone lies around 23,300-23,100 levels, with a violation potentially triggering further downside toward 23,000-22,500 levels. Despite foreign institutional investors remaining sellers, offloading equities worth ₹1,891.21 crore on Thursday, the decline in Brent crude below $105 per barrel and rupee's recovery to 96.20 against the US dollar offered some relief to investors. Market experts emphasized that any breakout on either side may indicate further direction for the index.
According to Axis Securities' recommendations reported by LiveMint, Deepak Fertilisers & Petrochemicals Corporation Ltd at ₹1,392 has decisively surpassed the resistance breakout around ₹1,320-1,340 levels on a closing basis with heavy volume, showing bullish sentiment across all timeframes. The stock is positioned above its 20-, 50-, 100-, and 200-day simple moving averages with expected upside of ₹1,460-1,520 and downside support at ₹1,350-1,320. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames, while the daily 'Bollinger Band' buy signals indicate increased momentum. Samvardhana Motherson International Ltd at ₹137 confirmed a downtrend line breakout at 133 level with huge volumes, showing sustained uptrend momentum with expected upside of ₹143-152 and support at ₹133-129 levels. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages with these averages also inching up alongside rising prices, indicating a sustained uptrend.
As reported by LiveMint, broader markets outperformed the benchmarks with small-cap and mid-cap indices rising 0.2% and 0.3% respectively. Fourteen of the 16 major sectoral indices traded in positive territory, indicating broad-based market participation. The rupee's recovery to 96.20 against the US dollar from 96.96 levels provided additional support to market sentiment, while the decline in crude oil prices to near $105 per barrel also offered relief to investors tracking ongoing US-Iran peace negotiations. Market experts noted that the decline in Brent crude below $105 per barrel and the rupee's recovery offered some relief to investors despite foreign institutional investors remaining sellers.
