NATIONAL: Indian benchmark indices closed in the red for the fourth consecutive session on May 29, driven by significant sell-offs in the banking and realty sectors. The Sensex plummeted by 667.55 points, or 0.89%, ending at 74,502.90, while the Nifty fell 183.50 points, or 0.80%, to close at 22,704.70. Most sectors experienced widespread weakness, with banking, financial, and IT stocks being the most affected.
During the trading session, heavy calls and put writing at various Nifty strikes suggested potential resistance at 23,000 and 22,800 and support at 22,800 and 22,700. The Nifty is expected to expire around 22,800, but a drop below 22,700 could trigger additional selling pressure. The Bank Nifty index also showed a negative trend, closing near its 21-day Exponential Moving Average (EMA) at 48,400, indicating potential further declines if it fails to maintain this level.
Broader market indices performed relatively better, finishing nearly flat to slightly negative. Due to weak global cues, Investor sentiment was heavily influenced, especially concerns over persistent inflation in major economies like Japan and Australia, which dampened hopes for a near-term rate cut by the US Federal Reserve.
Analysts recommended limiting aggressive long positions and adopting a hedged strategy as the market heads into the final phase of elections and the expiry of May derivatives contracts. Immediate technical support for the Nifty is anticipated around the 22,550 level, aligning with its 20-day EMA. Investors are advised to stay cautious and adapt their strategies to navigate this challenging environment.