May 24th 2024 Stock Market analysis

Market Struggles to Maintain Record High, Closes Flat Amid Volatility

In a rangebound trading session on May 24, India's benchmark indices hit fresh record highs, with the Nifty surpassing the 23,000 mark for the first time. However, the indices failed to sustain these higher levels and ended the day with minimal changes. At the close, the Sensex was down 7.65 points, or 0.01 percent, at 75,410.39, while the Nifty was down 10.55 points, or 0.05 percent, at 22,957.10.

For the week, both the BSE Sensex and Nifty50 indices rose by two percent each.

After a negative start, the benchmark indices achieved fresh record highs early in the session but moved within a narrow range for the remainder of the day.

Top gainers on the Nifty included HDFC Bank, L&T, Bharti Airtel, BPCL, and Axis Bank, while the top losers were Adani Ports, Tata Consumer, Tech Mahindra, Titan, and M&M. Among sectors, oil & gas, capital goods, telecom, and media rose by 0.5-2 percent, while FMCG, healthcare, IT, metal, and realty sectors each declined by 0.5 percent.

The BSE Midcap index was up by 0.2 percent, while the Smallcap index fell by 0.2 percent.

Over 200 stocks on the BSE reached their 52-week high, including Samvardhana Motherson International, Adani Enterprises, Aditya Birla Fashion, Ashok Leyland, Aurobindo Pharma, Bharat Forge, Bharti Airtel, Biocon, Divis Labs, Eicher Motors, Exide Industries, Hero MotoCorp, Oberoi Realty, Power Finance, SBI, and Tata Steel.

Technical Outlook on 27th May

Nifty may expect an immediate support near 22898 then 22839 and resistances are 23016 then 23075. Now the nifty is looking at a positive bias.

Bank Nifty may expect an immediate support near 48767 then 48563 and resistances are  49175 then 49379. Now the bank nifty is looking at a positive bias.

Derivative Outlook on 27th May

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative which shows CALL WRITING.

Open Interest Analysis: Nifty future MAY contract OI has increased with positive close which shows Long Buildup.

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

India VIX Analysis: India VIX has closed at 21.71 vs 21.38 (DoD) basis which shows increase in volatility.

Suzlon Energy Shares Plunge 5% Following 9% Decline in Q4 Net Profit

On May 24, Suzlon Energy Ltd reported a 9 percent decline in consolidated net profit, amounting to Rs 254 crore for the quarter ended March 31, 2024, compared to Rs 280 crore in the same period last year. Revenue from operations, however, surged by 29 percent to Rs 2,179 crore from Rs 1,689 crore year-on-year.

Following the earnings report, Suzlon Energy's shares dropped nearly 5 percent, hitting a lower circuit at Rs 45.89 per share on the BSE. Despite this decline, the stock has gained 9 percent over the past month and 19 percent year-to-date.

The company's EBITDA for the March quarter rose by 54 percent year-on-year to Rs 357.2 crore, with the margin expanding by 260 basis points to 16.3 percent from 13.7 percent in the previous year. Suzlon also announced its largest ever order book at 3.3 GW for the financial year 2024 and recently secured a repeat 402 MW order from Juniper Green Energy. Additionally, Suzlon ended the year with a net cash balance of Rs 1,148 crore.

Suzlon Group Vice Chairman Girish Tanti highlighted the company's addition of numerous Indian conglomerates to its customer portfolio, emphasizing the importance of maintaining a cost-conscious approach while pursuing growth. Group CFO Himanshu Mody reiterated the company's commitment to timely execution of its order book.

In a recent development, Suzlon announced new orders for the development of 402 MW wind energy projects from Juniper Green Energy. The project will involve the installation of 134 wind turbine generators (WTGs) with Hybrid Lattice Tubular (HLT) towers and a rated capacity of 3 MW each at Suzlon's proposed site in Fatehgarh, Rajasthan. Under the agreement, Suzlon will supply the wind turbines and oversee the project’s foundation, erection, and commissioning.

‍