Sensex and Nifty 50 Close Flat Amid Profit Booking at Record Highs – Key Insights for Investors

<ul>
    <li>The Indian stock market benchmarks, the Sensex and the Nifty 50, ended flat with a negative bias on Friday, May 24, due to profit booking at record-high levels amid weak global cues.</li>
    <li>Despite hitting fresh all-time highs during the session, both indices failed to maintain gains by the close of trading.</li>
    <li>Vinod Nair, Head of Research at Geojit Financial Services, commented on the subdued global market sentiments and the domestic market's new highs.</li>
</ul>
<p><strong>Indian stock market benchmarks, the Sensex and the Nifty 50, ended flat with a negative bias on Friday, May 24, amid profit booking at record-high levels and weak global cues.</strong></p>

<h2><strong>Sensex and Nifty 50 Hit Fresh All-Time Highs</strong></h2>
<p>The Sensex reached a new all-time high of 75,636.50 during the session but closed 8 points lower at 75,410.39. Similarly, the Nifty 50 hit its fresh all-time high of 23,026.40 but ended the day 11 points lower at 22,957.10. The market's inability to sustain gains was attributed to profit booking and weak global cues.</p>

<h3><strong>Lack of New Catalysts and Market Fundamentals</strong></h3>
<p>The Indian stock market currently lacks new catalysts to sustain and extend its gains. The significant gains in the previous session were driven by the RBI's substantial dividend to the central government. However, with this development now factored in, the market's attention has shifted to fundamentals, valuations, and global cues. Election-related jitters have eased, but speculations will keep the market volatile till the election outcome is announced.</p>

<h2><strong>Top Nifty 50 Gainers and Losers</strong></h2>
<p>In the Nifty 50 index, 17 stocks closed in the green, with HDFC Bank, Bharti Airtel, BPCL, L&T, and UltraTech Cement ending as the top gainers. On the other hand, shares of Adani Ports, Tech Mahindra, Mahindra and Mahindra, JSW Steel, and Titan ended as the top losers.</p>

<h3><strong>Sectoral Indices Performance</strong></h3>
<p>Nifty Bank rose 0.42%, while the Private Bank index increased by 0.41%. The PSU Bank index, however, dropped by 0.08%. Nifty FMCG (down 0.80%), Realty (down 0.66%), IT (down 0.64%), and Healthcare (down 0.60%) ended with significant losses. Among the gainers, Nifty Media (up 1.04%) stood at the top, followed by Nifty Financial Services (up 0.56%) and Oil & Gas (up 0.51%).</p>

<h2><strong>Expert Views on Market Sentiment</strong></h2>
<p>"Global market sentiments remained subdued as the recent US FOMC minutes suggest a continued hawkish stance on policy rates. US jobless claims fell more than expected, corporate profits remained healthy, and stubborn inflation persists, giving the Fed no reason to cut rates," said Vinod Nair, Head of Research, Geojit Financial Services. "The domestic market is reaching new highs, with large caps playing second fiddle to the broader market rally, indicating sustained momentum in the short term," added Nair.</p>

<h3><strong>Technical Analysis of Nifty 50</strong></h3>
<p>Rajesh Bhosale, a technical analyst at Angel One, advised traders to maintain a positive bias, with any dip toward the previous resistance of 22,800 likely acting as a buying opportunity. "The only concern is the benchmark index approaching the upper band of the 'Rising Channel,' which has been a turning point in recent months. This zone, around 23,100 - 23,200, should be closely watched," said Bhosale. He believes traders may book profits around 23,100 - 23,200 ahead of the key election results in anticipation of intense volatility. The approach would be to buy on dips around 22,800 and book profits around 23,200.</p>

<h3><strong>Conclusion</strong></h3>
<p>In summary, the Indian stock market experienced a flat close with a negative bias due to profit booking and weak global cues. Despite hitting fresh all-time highs, both the Sensex and Nifty 50 failed to sustain gains. The market currently lacks new catalysts, with attention shifting to fundamentals and global cues. Traders are advised to monitor key levels and plan their trades accordingly, especially with the upcoming election results and F&O expiry expected to bring heightened volatility.</p>