May 14th 2024 Stock Market analysis

Sensex and Nifty 50 Extend Gains for Third Straight Session; Investors Garner Nearly ₹5 Lakh Crore in Single Day

On Tuesday, May 14, Indian stock market benchmarks, the Sensex and the Nifty 50, closed in positive territory for the third consecutive session, buoyed by mixed global cues. After experiencing a nearly 2 percent decline last week, the market bounced back this week, partly due to improved valuation sentiments. The medium- to long-term outlook for the Indian stock market remains optimistic, supported by the nation's promising economic growth prospects.

Global markets exhibited a mixed performance as investors awaited US inflation data. The US producer price index for April was scheduled for release later that day, with greater anticipation surrounding the April US CPI data set to be unveiled on Wednesday. Market expectations were for a year-on-year rise of 3.4 percent in April, slightly lower than the 3.5 percent increase recorded in March. A notable decline in inflation would strengthen hopes for a US Fed rate cut in the latter part of the year.

Meanwhile, India's CPI inflation for April eased to an 11-month low of 4.83 percent from 4.85 percent in March, as revealed by data on Monday. The Nifty 50 opened at 22,112.90 and closed at 22,217.85, registering a gain of 114 points or 0.51 percent, with 36 stocks in positive territory. The Sensex, on the other hand, opened at 72,696.72 and settled at 73,104.61, up by 328 points or 0.45 percent, with 20 stocks in the green.

The mid and smallcap segments outperformed the benchmarks, with the BSE Midcap index ending 1.14 percent higher and the Smallcap index gaining 1.79 percent. Overall, the market capitalization of BSE-listed firms increased to nearly ₹402 lakh crore from approximately ₹397.4 lakh crore in the previous session, resulting in investors gaining approximately ₹4.6 lakh crore in a single trading session.

Technical Outlook on 15th May

Nifty is likely to find immediate support levels around 22,123 and 22,029, with resistances anticipated at 22,312 and 22,406. Currently, Nifty seems poised for a slight profit booking.

For Bank Nifty, immediate support levels are expected around 47,695 and 47,531, while resistances are seen at 48,024 and 48,188. Presently, Bank Nifty appears primed for a modest profit booking.

Derivative Outlook on 15th May

PCR Analysis: Nifty PCR-OI has increased with nifty has positive which shows PUT WRITING.

Open Interest Analysis: Nifty future MAY contract OI has decreased with positive close which shows Short Covering.

Cost of Carry Analysis: Nifty MAY month contract has ended in high compare with JUNE contract and low range compare with previous session which indicates a mild profit booking.

India VIX Analysis: India VIX has closed at 20.20 vs 20.60 (DoD) basis which shows decrease in volatility.

Rail Stocks Surge as RVNL Secures Rs 239 Crore Order; RailTel, Ircon Join Rally

Shares of Rail Vikas Nigam Ltd (RVNL) surged over 7 percent on May 14 after securing a Rs 239 crore order from South Eastern Railway. The PSU firm announced this in an exchange filing, detailing the contract for an automatic block signalling system from Jolarpettai Junction to Erode Junction in the Salem Division of the Southern Railway, to be completed within 12 months. Earlier in the month, RVNL had disclosed another order from South Eastern Railway to meet a 3,000 MT loading target.

Additionally, RVNL's railway counterparts also witnessed an upswing. RailTel, RITES, Indian Railway Finance Corporation (IRFC), Ircon International, IRCTC, BEML, and Titagarh Rail saw intraday surges of up to 11 percent.

RailTel shares hit an intraday high of Rs 393.55 apiece on NSE, marking a 10 percent surge. In the past year, the stock has soared 221 percent, surpassing the benchmark Nifty 50's 20 percent rise.

IRFC shares rallied over 7.1 percent intraday, reaching the day's high of Rs 156.35 on NSE, reflecting a staggering 362 percent growth over the last 12 months. Ircon International shares also saw a 7 percent increase, touching Rs 242.65 per share.

Meanwhile, IRCTC, BEML, and RITES observed intraday jumps of up to 4.5 percent, driven by high trading volumes.

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