The Indian stock market is expected to remain highly volatile until May 26 from a time cycle perspective, while the Doji candle on the daily chart confirms the uncertainties ahead.

The benchmark Nifty closed well below the 50-day moving average (weekly), indicating that 16,800 would act as resistance, followed by 17,000 levels. Breaking below 16,200 levels would confirm a complete trend change to the negative side. On the other hand, Bank Nifty has support at 34,000 followed by 33,800 while resistance is seen at the 35,500 level on a weekly basis.

This week, Nifty remained slow as 40 stocks closed negative while only 10 stocks closed higher than the previous week. India VIX, which measures the volatility index, jumped 9.45% during the week to end at 21.25.

The week started on a negative note following weak global signals triggered by geopolitical tensions, inflation concerns and monetary tightening. The sell-off in the domestic market was further aggravated by the surprise rate hike of 40 basis points by RBI.

As a result, the yield on 10-year Indian government bonds jumped 31 basis points to close the week at 7.45%, the highest rate seen in the past three years.

Sector-wise, only Nifty CPSE ended with a marginal gain of 1.61%, while Nifty Realty was the main laggard with a loss of 8.02%, while Pharma, IT and FMCG lost between 2 and 4%.

Top Winners

CCI: ITC’s share price jumped amid upbeat earnings expectations on improved cigarette performance

Coal India: Coal India’s share price is up as it plans to increase production to meet supply shortages.

The best losers

Eicher engines: Eicher Motor’s share price fell amid an industry-wide sell-off

Titan: Titan share price fell after disappointing results

Bajaj Finance: Bajaj finance’s share price fell on expectation of NIM compression in the future.

(Sumeet Bagadia, Executive Director, Choice Broking.

Published on: Saturday 07 May 2022, 22:52 IST