The NSE Nifty 50 continued its struggle against the key resistance of 24,590 as the stock markets ended lower on Thursday amid escalating tensions between India and Pakistan.

The index’s short-term upside appears capped as long as it remains below the resistance level of 24,590, according to Hrishikesh Yedve, assistant vice president at technical and derivatives research at Asit C Mehta Investment Interrmediates. “However, a sustained move above 24,590 could trigger an extended rally towards the 24,800–24,850 levels.”

The analyst identified key support around the 200-day simple moving average near 24,050. “Despite the steep intraday decline, the index continues to trade within its established range of 24,250–24,500, awaiting a decisive breakout on either side to provide clear market cues,” Aditya Gaggar, director of Progressive Share Brokers, said.

The Bank Nifty saw resistance at 55,000 levels, followed by 56,000 after the index formed a big red candle, indicating selling pressure at higher levels, Yedve said. He identified 53,890 as the key support.

Market Recap

Investor sentiment turned cautious on Thursday as geopolitical tensions between India and Pakistan escalated. The benchmark indices ended in the red, reversing Wednesday’s gains.

The NSE Nifty 50 closed 140.60 points or 0.58%, lower at 24,273.80, while the BSE Sensex ended 411.97 points or 0.51%, down at 80,334.81.

FII/DII Activity

Foreign portfolio investors stayed net buyers of Indian equities for the 16th straight session on Thursday, as they bought stocks worth Rs 2,007.96 crore.

Domestic institutional investors turned net sellers after being net buyers for a day, as they offloaded equities worth Rs 596.25 crore, according to provisional data from the National Stock Exchange.

Global Cues

Most markets in the Asia-Pacific region were trading higher, tracking overnight gains on Wall Street, as US President Donald Trump said that in case talks go well with China, tariffs may come down. Trump said this after announcing a trade deal with the UK.

The Nikkei 225 and S&P ASX 200 were trading 1.00% and 0.28% higher, respectively. The KOSPI was trading 0.29% down.

On Thursday, the Dow Jones Industrial Average and S&P 500 ended 0.62% and 0.58% higher, respectively. The Nasdaq Composite ended 1.07% higher.

The dollar index was trading 0.02% higher at 100.66 as of 6:52 a.m. The gold future was trading 0.17% higher at $3,312.62 an ounce. The July future contract of Brent crude was trading 0.51% down at $62.93 a barrel as of 6:54 a.m.

The GIFT Nifty was trading 0.46% or 111 points higher at 24,271.90 as of 6:54 a.m.

F&O Cues 

  • Nifty May Futures down by 1.08% to 24,207 at a discount of 66 points.

  • Nifty May futures open interest down by 3%.

  • Nifty Options May 15 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 22,000.

  • Put-Call ratio at 1.7, with highest change in Put open interest at 24,400.

  • Securities in ban period: CDSL, RBL Bank, Manappuram Finance. 

Major Stocks In News

  • Lupin: The company received US Food and Drugs Administration approval for Raltegravir tablets. Raltegravir tablets are used to treat HIV-1 infection in adults. U.S. market size estimated at $34 million. 

  • Mahindra and Mahindra Financial Services: The company approved the rights issue of Rs 194 per share for an aggregate amount of up to Rs 2,996 crore. The record date for determining the eligible shareholders is May 14. The rights issue will open for subscription on May 22 and close on June 6.

  • Brigade Enterprises: The company is set to develop a premium commercial project with a gross development of over Rs 2,000 crore in Bengaluru.

Currency Market

The Indian rupee weakened sharply by 89 paise against the US dollar to close at 85.72 on Thursday, as tensions escalated between India and Pakistan.

. Read more on Markets by NDTV Profit.The index continues to trade within its established range of 24,250–24,500, awaiting a decisive breakout.  Read MoreMarkets, Notifications 

​NDTV Profit