May 16th 2024 Stock Market analysis

Sensex and Nifty Close Nearly 1% Higher After Volatile Session; Bank Nifty Rebounds Above 48,000

On May 16, the Sensex and Nifty 50 ended nearly 1 percent higher after a volatile session, firmly recovering from the day's lows. Nifty experienced a sharp surge in the last half hour of the weekly expiry session.

Banking and IT stocks led the gains, while power stocks lagged. Concerns over FII selling and uncertainty over election results persist.

At the close, the Sensex rose by 677 points or 0.9 percent to 73,663, and the Nifty 50 increased by 203 points or 0.9 percent to 22,403. Approximately 2,049 shares advanced, 1,640 shares declined, and 116 shares remained unchanged. IT stocks remained strong following a softer-than-expected US April inflation report, which boosted hopes for a Federal Reserve rate cut in September. Lower interest rates are favorable for growth-focused IT stocks as they reduce borrowing costs and make these stocks more attractive compared to safe-haven US bonds. The broader market maintained gains, with both the BSE Midcap and BSE Smallcap indices rising over 1 percent each.

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Technical Outlook on 17th May‍

Nifty may find immediate support near 22,215, followed by 22,027, with resistances at 22,497 and then 22,591. Currently, Nifty is facing mild profit booking.

Bank Nifty may find immediate support near 47,799, followed by 47,621, with resistances at 48,155 and then 48,333. At present, Bank Nifty is experiencing mild profit booking.‍

Derivative Outlook on 17th 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 20.00 vs 20.27 (DoD) basis which shows decrease in volatility.‍

GAIL Q4 Net Profit Falls 22% to Rs 2,474 Crore; Shares Drop 4%‍

GAIL (India) Ltd reported a 22 percent decline in consolidated net profit to Rs 2,474.31 crore for the fourth quarter of the financial year 2023-24, down from Rs 3,193.34 crore in the previous quarter. However, net profit increased significantly compared to Rs 642.74 crore in the same period last year. Revenue from operations slightly decreased to Rs 32,833.24 crore in Q4 from Rs 33,264.06 crore a year ago.

In the reviewed quarter, EBIT from the natural gas transmission segment rose to Rs 979.78 crore, reversing a loss of Rs 16.41 crore in the year-ago period. The petchem segment reported an EBIT of Rs 262.34 crore, compared to a loss of Rs 400 crore last year. The natural gas marketing segment saw EBIT decrease to Rs 1,388.67 crore from Rs 1,880.42 crore in the previous quarter.

On the BSE, GAIL's shares traded at Rs 192.90 apiece, marking a nearly four percent decline from the previous day's close.