- The domestic benchmark indices, the Sensex and Nifty 50, started off Tuesday’s session on a flat note amid mixed global cues.
- The market was chiefly driven by metal, realty, and public sector undertakings (PSU) bank stocks.
- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the May pattern of continuous selling by FIIs and sustained buying by DIIs persists.
This article discusses the recent performance of the Sensex and Nifty 50, highlighting the influence of metal, realty, and PSU bank stocks, and the observations of Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Market Performance and Influences
The 30-share BSE Sensex opened lower by 79.41 points, or 0.11%, at the 72,696.72 level, while the Nifty 50 started off at the 22,112.90 level, up 8.90 points, or 0.04%. The market was primarily driven by metal, realty, and PSU bank stocks. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the May pattern of continuous selling by FIIs and sustained buying by DIIs persists. In May, FIIs sold shares in the cash market for ₹29,474 crore, while DIIs purchased for ₹22,973 crore.
Market Review and Outlook – Ruchit Jain
Ruchit Jain, Lead Research Analyst at 5paisa, provided a review and outlook of the market. He noted that the Nifty 50 has seen a sharp correction of almost 1,000 points in the last few trading sessions from the swing high. The index witnessed a recovery from the 100 DEMA support and formed a ‘bullish hammer’ pattern on the daily chart, which is a positive sign if the price action shows positive momentum the next day. He advised traders to look for stock-specific buying opportunities but avoid aggressive positions.
Stocks in Focus Today – Ruchit Jain
Jain recommended buying two stocks: Britannia Industries Ltd and Hindalco Industries Ltd. He stated that Britannia Industries went through a corrective phase in the first quarter of this calendar year, but the down moves were not backed by any high volumes. He expects the stock to rally higher in the near term. For Hindalco Industries, Jain explained that the stock has recently given a breakout above the previous swing high resistance and expects it to perform well in the short term.
Conclusion
The market performance was influenced by metal, realty, and PSU bank stocks. The Sensex and Nifty 50 started the session on a flat note, with the Nifty 50 recovering from the 100 DEMA support. Traders are advised to look for stock-specific buying opportunities and consider Britannia Industries Ltd and Hindalco Industries Ltd.
