Market Recap: Nifty, Bank Nifty, and Sensex Experience Marginal Losses
The Indian stock markets ended on a cautious note today, with the Nifty, Bank Nifty, and Sensex closing the day with marginal losses. This marks the second consecutive day of decline for the Nifty, which touched an all-time high of 23,000 earlier this week before closing at 22,888.15, down by 44.30 points or 0.19%. Similarly, the BSE Sensex fell by 220.05 points or 0.29%, ending at 75,170.45. A significant sell-off in the last trading hour contributed to the indices hitting their lowest points of the day.
Market Corrections: An Opportunity in Disguise
Market corrections are a natural part of trading dynamics and should be viewed in percentage terms. Despite the recent declines, the market has outperformed in recent years. Most overvalued indices are likely to correct slightly, presenting potential opportunities for investors. This phase allows for small profits at the broader market level due to current trading in an overbought zone. Long- to mid-term investors might consider booking profits in highly surged stocks and staying alert for potential dips. The major trend remains bullish, but short-term investors should be cautious about high buys. Focus on quality mid-cap stocks and leverage any good dip for potential gains.
Key Losers and Gainers
- Biggest Nifty Losers: Adani Ports, Power Grid Corp, Coal India, Adani Enterprises, BPCL.
- Biggest Nifty Gainers: Divis Laboratories, SBI Life Insurance, HDFC Life, Grasim Industries, Hero MotoCorp. Get daily live market researched trades here – https://t.me/SMTStockMarketToday
Support and Resistance Levels
- NIFTY:
- Support: 22,830 and 22,760
- Resistance: 22,910 and 22,960
- BANKNIFTY:
- Support: 48,970 / 48,800 / 48,650
- Resistance: 49,120 and 49,200
Sectoral Performance
- Declining Sectors: Oil & Gas, Capital Goods, Telecom, PSU Bank, Power, and Realty sectors fell between 1% and 2%.
- Gaining Sector: The Pharma index surged nearly 0.5%.
Election Impact and Volatility
With only one phase of the election pending, market volatility has increased. The VIX closed above 24 on 28th May, indicating heightened excitement and fear among investors. This environment has led to high option premiums, creating opportunities for options writers, albeit with inherent risks. Get daily live market researched trades here – https://t.me/SMTStockMarketToday
Trade Recommendations
Intraday Trade: Adani Enterprises (ADANIENT) Get daily live market researched trades here – https://t.me/SMTStockMarketToday
- Trade Type: Sell
- Entry Price Range: 3320-3350
- Target Levels:
- Target 1: 3200
- Target 2: 3150
- Target 3: 3100
- Target 4: 3060
- Stop Loss: 3400
- Time Period: 1 day
Intraday Trade: Abbott India (ABBOTINDIA)
- Trade Type: Sell
- Entry Price Range: 26300-26450
- Target Levels:
- Target 1: 25950
- Target 2: 25800
- Target 3: 25600
- Target 4: 25450
- Stop Loss: 26800
- Time Period: 1 day
Swing Trade: L&T Technology Services (LTTS) Get daily live market researched trades here – https://t.me/SMTStockMarketToday
- Trade Type: Buy (Above)
- Entry Price Range: 4580-4610
- Target Levels:
- Target 1: 4700
- Target 2: 4780
- Target 3: 4830
- Target 4: 4950
- Stop Loss: 4450
- Time Period: 1 to 10 days
Conclusion
Today’s market performance reflects a cautious sentiment amidst ongoing volatility, with divergent trends across various sectors and stocks. Investors should remain vigilant, especially with the approaching election results, and consider strategic profit booking and re-investments during market dips.
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