The Indian equity indices gave up their record gains during the later trading hours and fell sharply on May 27. The indices hit a new all-time high during the volatile session on the back of the general elections moving into the last phase of voting. The Nifty 50 advanced to a record high of 23,110.80, but later couldn’t sustain gains and closed 25 points or 0.11% lower at 22,932.45. Similarly, the BSE Sensex soared to a new lifetime high of 76,009.68, crossing the psychological level of 76,000 for the first time. However, it also met the same fate and gave up its record gains in the later trading hour, closing 20 points or 0.03% lower at 75,390.50. Oil & gas, power, and metal stocks were the major draggers. While Banking stocks pushed the indices towards new highs. 

Adani Enterprises, Wipro, Grasim Industries, ONGC, and SBI Life Insurance were the major losers in the Nifty 50 on May 27.

Sectoral indices higher

The Nifty Midcap 100 hit its all-time high of 53,043.60 and jumped the psychological level of 53,000. Later, the sectoral index, constituting midcap companies, closed 337.30 points or 0.64% higher at 52,761.75. Nifty Bank closed 310.15 points or 0.63% at 49,281.80. In the broader market, smallcap and midcap stocks closed in the green. 

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“The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee-jerk reaction in the market ahead of the election result. Better earnings growth, the expectation of a revival in private capex, and a moderation in FII selling intensity are the key positive triggers in the market. The release of India’s Q4 GDP and US inflation figures this week will also influence investors to get a direction in the near term,” said Vinod Nair, Head of Research, Geojit Financial Services.

“The presence of resistance around the 23,100 level in the Nifty, along with a rise in the volatility index, India VIX, limited the upside. We may see further consolidation in the index ahead, so participants should focus on careful stock selection and effective trade management,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.

Nifty’s Technical Side

“Bank Nifty is in the process of aligning with the other indices and hence we are witnessing a continuation of the positive price action. Support from the key heavyweights of the index like HDFC Bank, ICICI Bank, Axis Bank, and IndusInd Bank is supporting the upmove. We believe that the Bank Nifty is likely to continue its upmove towards 49700 – 49975 from a short-term perspective. The trailing stoploss for the long positions should be kept at 49000,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.