Nifty-Sensex continue to rally, election result uncertainty reducing rapidly
May 24, 2024
Mumbai (Maharashtra) [India], May 24 : Indian indices Nifty and Sensex opened flat on Friday, near the record closing of the previous day. The Nifty Index opened at 22,930 points, very close to the 23,000 mark. The Sensex also sustained Thursday's rally and opened near 75,335, close to the 75,500 mark.
"The net inflow number by FIIs on Thursday is Rs 4670 crores. The key factor to watch will be if this FII buying sustains going into the May 31st market close, which will be the last trading day before the Exit Polls of June 1st. We expect a subdued though positive market, as the Election uncertainty is rapidly reducing" said Ajay Bagga, Banking and Market Expert.
Both indices touched historic highs on Thursday, with the Nifty 50 closing above 22,900. The Sensex surged 1,196.98 points, or 1.61 percent, to 75,418.04, while the Nifty 50 gained 369.85 points, or 1.64 percent, to settle at 22,967.65.
"A long bullish candle on the daily chart is indicating a decisive break out that could help the market to rally further from current levels. Earlier resistance, 22800/75000 will be the key support level in corrections. Above that the market can rally up to 23500-23750/77000-77800. On the other hand, below 22800/75000, it could retest the levels of 22600 levels. The strategy should be to buy select stocks between the 22800 and 22850 levels" said Shrikant Chauhan, Head equity research, Kotak Securities.
In the broader market, all major indices including Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Smallcap opened with gains on Friday.
In the sectoral indices, Nifty Bank and Nifty Financial Services followed the rally, while Nifty Auto, Nifty FMCG, and Nifty IT declined marginally in the opening session.
In the Asian markets, selling pressure is high, with Japan's Nikkei index declining by more than 1.17 percent. Hong Kong's Hang Seng also declined by 1.28 percent, and the Taiwan Weighted Index followed the declining trend in Asia, losing 64 points to 21,543. In China, the Shanghai Composite Index also declined to 3,110.09.
In the commodity markets, gold prices have declined to 71,500 rupees, down more than 2,000 rupees in just three days after the US Fed announced the minutes of the policy meeting, which indicated no recent rate cuts.
