NIFTY50 struggles as profit booking intensifies, 22,500 a key support for expiry

The markets saw profit-taking for the third consecutive day and ended the day in the red. After a gap down opening, the NIFTY50 index traded in a narrow range and remained in the grip of the bears. The index ended the day near day’s low and closed at 22,704 while the SENSEX slipped 0.8% to 74,502.

On the sectoral front, Pharma (+0.4%) and Metals (+0.2%) advanced the most, while Financial Services (-1.6%), Banks (-1.3%) and Oil & Gas (-1.0%) stocks were the top losers.

The NIFTY50 slipped below the key support zone from which it broke out on 23 May. The index closed below the 22,750-22,800 zone, which was its previous all-time high zone. Experts believe that a close below this zone signals weakness and the possibility of a false breakout. However, the trend has now turned from bullish to range bound. They believe that further weakness will be seen if the index surrenders 22,500-mark on a closing basis.

• Top gainer and loser in NIFTY50: Hindalco (+3.5%) and HDFC Life (-2.8%)

• The broader markets saw profit-booking for the second day in a row. The NIFTY Midcap 100 slipped 0.3%, while the Smallcap 100 index closed flat.

• Top gainer and loser in NIFTY Midcap 100: Bharat Dynamics (+6.2%) and Macrotech Developers (-3.7%)

• Top gainer and loser in NIFTY Smallcap 100: Mazagon Dock Shipbuilders (+10.5%) and PNB Housing Finance (-6.6%)

Key highlights of the day

🔥Hindalco Industries (+3.5%) was in focus after its U.S. subsidiary Novellis finalised its IPO price band in a range of $18-21.

🚆IRCTC shares slipped over 3% after the company’s net profit and margins missed street estimates. The company’s net profit rose 2% YoY in Q4FY24 to ₹284 crore. The company’s profitability was impacted by higher expenses.

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4 trading insights from NIFTY 200🔍

📉Open = High (Bear power): InterGlobe Aviation (Indigo), HDFC Life, Dabur, Tech Mahindra, Ultratech Cement and PI Industries

📈Open = Low (Bull power): One 97 Communications (Paytm), Power Grid, ITC, Bharti Airtel and Page Industries

🏗️Fresh 52 week-high: Mazagon Dock Shipbuilders, Aditya Birla Fashion and Retail, Samvardhana Motherson, Hindalco and Divi's Laboratories

⚠️Fresh 52 week-low: N/A

See you tomorrow!