The NSE Nifty 50 faces immediate support at around 24,800 levels amid weak global cues, triggered by Moody’s downgrading of US credit rating and China’s retail sales growth slipping in April and missing estimates.

“Immediate support for the Nifty is seen in the band of 24,750-24,800, while positional stands at 24,500. On the upside, resistance is placed at 25,116 and 25,207,” said Nandish Shah, senior derivative and technical research analyst at HDFC Securities.

On the downside, the crucial support is “seen at 24,800”, followed by a “stronger support zone near 24,700”, according to Hardik Matalia, derivative analyst, Choice Broking.

A breakdown below this zone could intensify selling pressure, potentially dragging the index towards the 24,500–24,300 range, he added.

“On the upside, 25,000 acts as the initial resistance, while a more significant hurdle lies near 25,200. A decisive breakout above this level could trigger a bullish rally towards the 25,500–25,700 zone,” Matalia added.

Bank Nifty, another keenly tracked index, could gradually move towards the 56,400 level, as per Bajaj Broking. On the downside, immediate support is placed at 54,800, the brokerage stated.

Global Cues 

Markets in Japan, South Korea, and Australia advanced as investors await policy decision from the Reserve Bank of Australia. The People’s Bank of China reduced its loan prime rate and infused more liquidity into the banking system which also boosted investors’ sentiment.

The Nikkei 225 and KOSPI were trading 0.54% higher at 37,717.00, and the KOSPI was flat at 2,603.48. The S&P ASX 200 was 0.72% higher at 8,354.90 as of 6:55 a.m.

On Monday, the Dow Jones Industrial Average rose 0.32% at 42,792.07. The S&P 500 rose 0.09% at 5,963.60. The Nasdaq Composite rose 0.02% at 19,215.46.

The dollar index was trading 0.04% higher at 100.18. The brent crude was trading 0.15% down at $65.43 a barrel. The Gold future was trading 0.13% down at 3,229.12 as of 6:58 a.m.

Market Recap

The benchmark equity indices closed lower on Monday for the second consecutive session amid volatility in the stock markets following Moody’s downgrade of the US by a notch.

The NSE Nifty 50 closed 74.35 points or 0.3% lower at 24,945.45 and the BSE Sensex ended 271.17 points or 0.33 down at 82,059.42. During the day, the Nifty fell 0.41% to 24,916.65, while the Sensex declined 0.44% to 81,964.57.

FII/DII Activity

Foreign portfolio investors turned net sellers on Monday, offloading equities worth Rs 526 crore, according to the provisional data from the National Stock Exchange.

Domestic institutional investors turned net sellers after a session of buying as they net sold equities worth Rs 237.9 crore, the data showed.

F&O Cues

  • Nifty May Futures down by 0.45% to 24,965 at a discount of 30 points.

  • Nifty May futures open interest down by 1.66%.

  • Nifty Options May 22 Expiry: Maximum call open interest at 26,000 and maximum Put open interest at 24,000.

  • Securities in ban period: Hindustan Copper, Manappuram Finance and Titagarh.

Stocks In News

  • JSW Infrastructure: The company’s promoter undertakes a 2% stake in the company through market sale.

  • Waaree Energies: The company has acquired 100% stake in Kamath transformers for Rs 293 crore.

  • Vodafone Idea: The Supreme Court on Monday refused to admit the writ petition filed by the company, seeking appropriate relief in the AGR Matter.

Currency Market

The rupee closed stronger against the greenback as the dollar index continued to decline. The local unit ended 12 paise stronger at 85.4 against the greenback.

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