Stock market today: Domestic market benchmarks, the Sensex and the Nifty 50, ended slightly lower on Thursday, 21 May, due to profit booking in select heavyweights, including Reliance Industries, Bharti Airtel, and Infosys.
The Sensex ended the day with a loss of 135 points, or 0.18%, at 75,183.36, while the Nifty 50 settled at 23,654.70, down 4 points, or 0.02%.
IndiGo, BEL, and Trent ended as the top gainers in the Sensex index, while Bajaj Finance, Tech Mahindra, and Hindustan Unilever ended as the top losers.
However, the mid and small-cap segments ended higher. The BSE 150 Midcap index climbed by 0.18%, while the BSE 250 Smallcap index jumped 0.70%.
Investors are buying and selling selectively as crude oil prices remain above $100 per barrel and the rupee weakens amid persisting uncertainty over a potential US-Iran peace deal.
Higher crude oil prices have increased inflationary risks and fanned speculation of imminent monetary tightening, keeping the market nervous.
“Domestic equities erased early gains as concerns over potential RBI rate hikes and weak manufacturing PMI data outweighed optimism from softer crude prices. Uncertainty around US–Iran negotiations, signals of possible domestic monetary policy tightening, and a weaker growth outlook continued to raise macro concerns,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Despite resilience in small caps and selective buying in realty and healthcare, profit booking kept markets flat by the close. Looking ahead, the near-term trajectory hinges on the RBI’s June policy decision, progress in US-Iran talks, and the stability of key growth indicators and the rupee,” said Nair.
Meanwhile, crude oil benchmark Brent Crude jumped more than 2% on Thursday to trade above the $107 per barrel mark amid reports of further tensions in the Middle East.
As per news agency Reuters, “Iran’s Supreme Leader has issued a directive that the country’s near-weapons-grade uranium should not be sent abroad.”
The rupee rebounded 49 paise from its all-time closing low to settle at 96.37 against the US dollar on Thursday, reported PTI.
On the technical front, Shrikant Chouhan, the head of equity research at Kotak Securities, believes 23,500-23,400 remain the crucial support zones, while 23,800-23,850 could act as key resistance areas for the bulls.
On the positive side, Chouhan said a breakout above 23,850 could push the market up to 23,950-24,000, while below 23,400, it could retest the levels of 23,250-23,200.
Sudeep Shah, the head of technical and derivatives research at SBI Securities, said the 23,820–23,850 zone is likely to act as a key resistance for the index.
“A sustained move above 23,850 could pave the way for an upward move towards the 24,000 mark. On the downside, the 23,550–23,500 zone is expected to act as important support,” said Shah.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
