May 29th 2024 Stock Market analysis

Market Downturn: Nifty Falls Below 22,700, Sensex Sheds 668 Points Amid 4-Day Slump

The Indian equity market extended its losing streak for the fourth consecutive session on May 29, with the Nifty closing at 22,704.70 amid broad-based selling in oil & gas, IT, realty, and banking sectors. The Sensex fell 667.55 points, or 0.89 percent, to 74,502.90, while the Nifty declined by 183.50 points, or 0.80 percent.

Amid mixed global cues, the market opened on a negative note and continued to decline throughout the day, pushing the Sensex and Nifty below 74,500 and 22,700, respectively.

The biggest Nifty losers included HDFC Life, SBI Life Insurance, ICICI Bank, Tata Consumer Products, and Tech Mahindra. Meanwhile, gainers were Hindalco, Power Grid Corp, Divis Labs, Nestle, and Sun Pharma.

Sectoral performance was mixed, with capital goods, telecom, healthcare, metal, and power ending in the green, while auto, banking, FMCG, IT, oil & gas, and realty sectors were down 0.3-1 percent. The BSE midcap index dropped 0.4 percent, while the smallcap index rose 0.2 percent.

Significant volume spikes of over 100 percent were observed in GNFC, Ipca Lab, and Piramal Enterprises. A long build-up was noted in Samvardhana Motherson International, Hindalco Industries, and Jubilant FoodWorks, whereas a short build-up was seen in ICICI Prudential Life Insurance, IRCTC, and Interglobe Aviation.

Nearly 150 stocks, including Samvardhana Motherson International, Hindalco Industries, Divis Labs, Aditya Birla Fashion, Glenmark Pharma, Coromandel International, and Power Finance, reached their 52-week highs on the BSE.

Technical Outlook on 30th May

The Nifty is expected to find immediate support near 22,634, followed by 22,564, with resistance levels at 22,774 and then 22,844. The index appears to be entering a profit-booking phase.

Similarly, the Bank Nifty is anticipated to find immediate support near 48,176, followed by 47,881, with resistance levels at 48,811 and then 49,121. The Bank Nifty is also poised for a profit-booking rally.

Derivative Outlook on 30th 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 decreased with negative close which shows Long Unwinding.

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 profit booking to be continued.

India VIX Analysis: India VIX has closed at 24.18 vs 24.20 (DoD) basis which shows flat in volatility.

NBCC Shares Soar 5%, Achieving Over 233% Growth in One Year

On Wednesday, May 29, NBCC (India) shares jumped over 4 percent following the release of strong quarterly results for the period ending March 2024. The stock closed at ₹142, up from ₹138 per share on Tuesday. The state-owned construction company reported a 24.6 percent year-on-year increase in net profit to ₹141.5 crore and a 43 percent surge in revenue from operations, reaching ₹4,025 crore for the reviewed quarter. NBCC's EBITDA rose to ₹240.2 crore in Q4 FY24, compared to ₹104.5 crore in the same period of FY23, with the EBITDA margin improving to 6 percent from 3.7 percent. At 9:30 am on Wednesday, NBCC shares opened 4.17 percent higher at ₹144.80 per share. This year, the stock has surged approximately 72 percent, significantly outperforming the benchmark Nifty 50, which has risen nearly 5 percent during the same period. Over the last year, NBCC stock has yielded returns exceeding 233 percent.

Additionally, the board of directors proposed a final dividend of ₹0.63 per paid-up equity share of Re 1 each for fiscal year 2024, pending approval by shareholders at the upcoming annual general meeting. If approved, the dividend will be distributed within 30 days of the AGM.