Domestic benchmark indices closed modestly higher on Friday, driven by strength in financial counters, although sharp weakness in pharma and healthcare shares trimmed the overall gains. The Nifty advanced 64.60 points, or 0.27%, to end at 23,719.30, while the BSE Sensex rose 231.99 points, or 0.31%, to settle at 75,415.35.
Meanwhile, the volatility gauge India VIX ended at 17.91, down by 0.49% from the last closing.
Here's how analysts read the market pulse:
Commenting on the trends, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty failed to close above the crucial 23,800 resistance level for the second consecutive session. Although the RSI has entered a positive crossover, it remains largely flat on the daily timeframe, indicating a lack of strong momentum, he said.
"Overall, Friday’s session remained lackluster, with neither a breakout nor a breakdown visible on the charts. In fact, over the last 4–5 sessions, the index has been trading in an indecisive range-bound manner without any clear directional trend. A decisive breakout from this range is essential for the next leg of rally or correction to unfold," De said, adding immediate support is placed at 23,600, below which the index may drift towards 23,400. "A breach below 23,400 could trigger a sharper correction in the market. On the higher side, a decisive move above 23,800 may induce a fresh directional upward move in the short term," this analyst said.
US markets
Frontline indices on Wall Street closed in the green on Friday as treasury yields eased, lifting megacaps and chip stocks, though markets watched for signs of a breakthrough in discussions to end the Middle East war.
While Dow 30 ended at 50,579.70, gaining 294.04 points or 0.58%, the S&P 500 was 0.37% (27.75 points) higher at 7,473.47. The tech-heavy Nasdaq Composite was down by 50.87 points or 0.19% to hover around 26,343.97 at this time.175.41.
European Markets
Most major European indices closed higher on Friday. UK’s FTSE 100, Stoxx 600, Germany's Dax, French CAC and Spain's IBEX 35 ended up by up to 1.15%.
Tech View
Decoding the Nifty charts, Bajaj Broking said the index has formed a bearish candlestick pattern with a higher high & a higher low on the daily chart signaling selling pressure at higher levels around the recent breakdown area of 23,800-23,900. "Going ahead, index to extend the last seven sessions consolidation in the range of 23,200-23,900. Only a move above the recent breakdown area of 23,800-23,900, will signal a pause in the overall corrective trend," the brokerage said.
"Index needs to start forming higher highs and higher lows on a sustained basis in the daily chart, and a move above the breakdown area of 23,800-23,900 to signal strength. Nifty has key support at 23,200-23,000 levels, being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601)," the brokerage said further.
Most active stocks in terms of turnover
One 97 Communications (Paytm, Rs 996 crore), Adani Energy Solutions (Rs 691 crore), MTAR Technologies (Rs 459 crore), Indus Tower (RIL, Rs 268 crore), Tata Consultancy Services (TCS, Rs 207 crore), Dixon Technologies (Rs 197 crore) and Grasim Industries (Rs 178 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 4.79 crore), Paytm (Traded shares: 88.84 lakh), JSW Cement (Traded shares: 73.63 lakh), Ola Electric (Traded shares: 67.32 lakh), Indus Tower (Traded shares: 62 lakh), JP Power (Traded shares: 61.74 lakh) and YES Bank (Traded shares: 60.59 lakh) were among the most actively traded stocks in volume terms on BSE.
Stocks showing buying interest
Honasa Consumer, Parle Industries, Life Insurance Corporation of India (LIC), Rashtriya Chemicals & Fertilizers (RCF), Laxmi Dental, Ramco Systems and OCCL were among the stocks that witnessed strong buying interest from market participants.
52-week high
Today, 126 stocks hit their 52-week highs while 41 stocks slipped to their 52-week lows. Among the ones that hit their 52-week highs were Angel One, Apollo Hospitals Enterprise, Apar Industries, Bajaj Consumer Care, Dhanlaxmi Bank, Grasim Industries and Honasa Consumer.
Stocks seeing selling pressure
Among the largecap names were Max Healthcare Institute, Sun Pharmaceuticals and ONGC. Other stocks which witnessed significant selling pressure were LG Electronics, Central Bank of India, SMS Pharmaceuticals, Ganesha Ecosphere, Wakefit Innovations, Flair Writing Industries and Quick Heal Technologies.
Sentiment meter favours bears
Sensex settled with gains lifted mainly by ICICI Bank, HDFC Bank and Axis Bank, the broader market breadth stayed mildly positive. Out of the 4,363 stocks that traded on the BSE on Friday, May 22, 2,168 stocks witnessed advances, 2,027 saw declines while 168 stocks remained unchanged.
