Stock market today: Nifty 50, Sensex end flat after hitting fresh record highs; India VIX jumps 7%

Stock market today: Indian stock market benchmarks, the Nifty 50 and the Sensex closed flat after hitting their fresh record highs in intraday trade on Monday, May 27, on profit booking at higher levels amid mixed global cues.

After opening higher, the Sensex and the Nifty 50 hit their fresh all-time highs of 76,009.68 and 23,110.80, respectively, during the session. Both indices, however, failed to hold gains, and profit booking at higher levels resulted in mild losses.

Sensex closed the day 20 points, or 0.03 per cent, lower at 75,390.50, while the Nifty 50 ended 25 points, or 0.11 per cent, down at 22,932.45.

Also Read: Market Close Highlights: Benchmarks off record highs, Sensex closes at 75,390, Nifty at 22,930; Bank, FS, Realty gain

Heavyweight stocks, such as Reliance Industries, ITC, and Mahindra, ended as the top drags on the Nifty 50. On the other hand, HDFC Bank, Axis Bank, and Larsen & Toubro provided the strongest support to the index. 29 stocks ended in the green in the Nifty 50 index.

The market witnessed a significant spike in volatility as India's VIX jumped nearly 7 per cent to 23.19. The volatility index has surged over 80 per cent in May so far. 

Mid and smallcaps outperformed the benchmarks. The Nifty Midcap 100 index rose 0.64 per cent, while the Nifty Smallcap 100 index jumped 0.81 per cent.

Investors are exercising caution and booking profits at peak levels to mitigate potential losses in the event of a knee-jerk reaction following next week's Lok Sabha election results. India's Q4FY24 GDP data, expected on Friday, is also in focus.

Also Read: Lok Sabha elections 2024 trading strategy: Poll-driven equity weakness buying opportunity, says UBS

“The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee-jerk reaction in the market ahead of the election result,” said Vinod Nair, Head of Research, Geojit Financial Services. 

"Better earnings growth, the expectation of a revival in private capex, and a moderation in FIIs selling intensity are the key positive triggers in the market. The release of India's Q4 GDP and US inflation figures this week will also influence investors to get a direction in the near term," said Nair. 

Top Nifty 50 gainers today

Shares of Divi's Labs (up 2.99 per cent), IndusInd Bank (up 1.39 per cent) and Adani Ports (up 1.17 per cent) ended as the top gainers in the Nifty 50 index.

Top Nifty 50 losers today

Shares of Adani Enterprises (down 2.66 per cent), Wipro (down 2.17 per cent) and Grasim (down 2.09 per cent) closed as the top losers in the index.

Also Read: Top Gainers and Losers today on 27 May, 2024: Divis Laboratories, Indusind Bank, Adani Enterprises, Wipro among most active stocks; Check full list here

Sectoral indices today

Nifty Media (down 0.97 per cent), Metal (down 0.62 per cent) and Oil & Gas (down 0.55 per cent) ended with significant losses.

On the other hand, Nifty Bank (up 0.63 per cent), PSU Bank (up 1.33 per cent), Private Bank (up 0.54 per cent) and Realty (up 0.85 per cent) closed with healthy gains.

Also Read: FPIs continue to dump financials, IT, FMCG shares in May. What lies ahead?

Outlook for Nifty 50

Experts are largely positive about the near-term prospects of the market.

According to Rupak De, Senior Technical Analyst at LKP Securities, the near-term outlook remains positive, with the index staying above the crucial moving averages.

"Support lies at 22,900, below which the index might slip towards 22,800. On the higher end, bears are active around 23,000-23,050. A decisive move above 23,050 might trigger a stronger rally towards higher levels," said De.

Shrikant Chouhan, the head of equity research at Kotak Securities, pointed out that after a promising uptrend rally, the Nifty 50 formed a bearish candle on daily charts, which indicated temporary weakness.

"We are of the view that the larger market texture is still on the positive side, but buying on intraday correction and selling on rallies would be the ideal strategy for the day traders," said Chouhan.

"Technically, 22,800 -22,735/75,000-74,750 would act as key support levels while 23,100-23,175/75,700-76,000 could be the key resistance areas for the day traders. However, below 22,735/74,750, the uptrend would be vulnerable," said Chouhan.

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