Stock Market: Nifty With Double Tap Chart Keeps Traders on Edge
Institute of Directors organised Western Regional conference on 24th May at ICH, BSE(Image BSE India)
Stock Markets End in the Red After Volatile Session; Nifty Slips Below 24,850
PSU Banks shine amidst broad-based selling; Ultratech Cement and FMCG drag down indices
By S JHA
MUMBAI, May 27 – Indian equity markets witnessed a high-voltage roller-coaster ride on Tuesday. The benchmark indices swung wildly amid sharp intraday moves. The Nifty 50 opened on a weak note and quickly plunged due to broad-based selling pressure.
The 50-share index staged a surprising recovery mid-session. However, renewed selling in the second half dragged the index back down, eventually closing with a loss of 0.70% at 24,826.2.
The Sensex mirrored the volatility, reflecting the markets’ struggle to find direction amid global uncertainties and the looming monthly expiry.
Nifty Trades in a Tight Range Amid Double Top Formation
Nifty continued to oscillate within a tight range of 24,550 to 25,050, unable to decisively break through resistance at 25,100. “Technical indicators pointed to a cautious short-term outlook, with the formation of a double top pattern on the hourly chart signaling possible weakness at higher levels,” said Angel Broking in a post-market note to clients.
Despite closing in the red, the index stayed above its 10-day exponential moving average, suggesting that the broader trend remains positive for now. Meanwhile, India VIX rose 2.8% to a 12-session high, highlighting heightened trader nervousness in the rollover week.
Sector Check: PSU Banks Defy Trend
The broader market saw widespread profit booking across key sectors, especially FMCG, IT, and Commodities, which underperformed. However, PSU Banks bucked the trend, emerging as the standout performer of the day. The Nifty PSU Bank index closed firmly in the green, driven by gains in key constituents.
Realty stocks also showed resilience, while the Nifty India Defence index led the sectoral gainers, rising 1.1%.
Stock Highlights:
- Top Gainer: JIO Financial Services Ltd. gained 3.4%, topping the Nifty 50 chart.
- Top Loser: Ultratech Cement Ltd. fell 2.3%, closing at an 11-session low amid a 29% jump in open interest — indicating short buildup.
- Eris Lifesciences Ltd. hit a fresh all-time high, supported by strong volumes above the 20-day average.
- Olectra Greentech Ltd. took a hit after the Maharashtra government cancelled a ₹10,000 crore e-bus order.
- KEC International Ltd. posted a stellar Q4, with net profit rising 76.7% year-on-year.
- PTC India Ltd. reported a four-fold jump in Q4 net profit, along with improved EBITDA margins.
Bank Nifty Remains Indecisive
“The Bank Nifty index continued to signal uncertainty, forming a Doji-like candle for the second straight session. It faced resistance at 55,800 and established a support zone at 55,000, indicating a possible consolidation phase,” said StockEdge in a post-market commentary in its Telegram channel.
Outlook: Eyes on 25,100 Breakout
Market analysts suggest that Nifty’s inability to break past the 25,100 mark continues to cap upside momentum. A decisive move above this level could spark a renewed rally toward 25,250–25,400. On the downside, key supports lie at 24,600 and 24,450.
As expiry approaches, volatility is expected to persist, and traders are advised to remain cautious amid shifting intraday trends.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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