Benchmark equity indices closed sharply lower on May 29, with Nifty dropping below the 23,600 level due to widespread selling across sectors. Investor caution increased after the IMD forecast monsoon rainfall at 90 percent of the long-period average, while a rise in India VIX signaled greater volatility. Selling accelerated in the final trading hour because of MSCI rebalancing adjustments.
The index broke below a rising trendline on the daily chart, pointing to renewed bearish sentiment. Analysts expect further downside pressure in the near term, with possible movement toward 23,250. Immediate resistance stands near 23,700, and selling may continue while the index stays below this mark, according to Rupak De of LKP Securities.
US markets finished higher on Friday. The Dow Jones Industrial Average rose 336.94 points, or 0.66 percent, to 51,005.91. The S&P 500 gained 0.21 percent to 7,579.74, and the Nasdaq Composite added 0.22 percent to close at 26,976.35.
European shares posted modest gains and monthly advances, helped by optimism over a possible reopening of the Strait of Hormuz. The STOXX 600 index increased 0.14 percent, while emerging-market stocks rose 1.50 percent to 1,750.60.
Nifty faced resistance at the 50-day EMA during the week and recorded a sharp drop of more than 350 points on Friday. Analysts at Bajaj Broking expect consolidation between 23,200 and 24,000, with support at 23,000-23,200.
Stocks with highest trading value on BSE included Bharti Airtel, Infosys, HDFC Bank, Federal Bank, Reliance Industries, MCX and Netweb Tech. Highest volume names were Vodafone Idea, JP Power, Ola Electric, YES Bank, Federal Bank, Suzlon and GMR Infra.
Netweb Technologies, Wockhardt, Thermax and several other stocks attracted strong buying interest. Shares hitting 52-week highs included Netweb Tech, Wockhardt, Thermax, RR Kabel, Kirloskar Oil, HFCL and Triveni Turbine. Stocks under selling pressure were Natco Pharma, Jyoti CNC, Praj Industries, MCX India, GE Shipping, Bharat Dynamics and BEML.
Of 4,463 stocks traded on BSE, 1,611 advanced, 2,673 declined and 179 were unchanged.
