Stock Market Today: Sensex Settles 560 Points Down, Nifty Near 24,642

Indian benchmark indices, Sensex and Nifty, plummeted on May 22, reflecting a global sell-off triggered by rising US bond yields and renewed concerns over America's fiscal health, which unsettled investor sentiment. The sharp decline affected nearly every sector, including midcap and smallcap stocks, leading to a widespread market rout. However, the indices managed to recover somewhat by the close, ending off their lowest points of the day.

At the close, the Sensex had fallen by 644.64 points, or 0.79 per cent, settling at 80,951.99, while the Nifty dropped by 203.75 points, or 0.82 per cent, to 24,609.70. A total of 1,724 shares advanced, 2,049 shares declined, and 159 shares remained unchanged.

Among the top gainers on the Nifty were IndusInd Bank, Bharti Airtel, JSW Steel, Bajaj Auto, and Hero Motocorp, while ONGC, M&M, Hindalco, Tech Mahindra, and Wipro were the biggest losers.

Sectorial Update

On the NSE, most sectoral indices ended lower on May 22, dragged down by widespread selling. The Nifty FMCG, IT, and consumer durables sectors were among the worst performers, falling 1.44 per cent, 1.31 per cent, and 1.14 per cent, respectively. The Nifty Auto index dropped 1.01 per cent, and the Oil & Gas and Pharma indices both saw declines of over 0.9 per cent. Banking stocks showed more resilience, with the Nifty Bank and Private Bank indices falling only 0.24 per cent and 0.22 per cent, respectively, while the Nifty PSU Bank index declined by 0.58 per cent. Broader markets also remained under pressure but recovered from their lows, with the Midcap 100 and Smallcap 100 indices slipping by 0.52 per cent and 0.26 per cent, respectively.

Expert Comments

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, noted, “Indian benchmark indices opened on a negative note due to weak global cues, remained under pressure throughout the day, and ultimately settled on a negative note at 24,610. The volatility index, India VIX, cooled off by 1.65 per cent to 17.26, indicating a drop in market volatility.”

“Technically, Nifty formed a red candle on the daily chart, suggesting weakness. However, the index found support around the 21-Day Exponential Moving Average (21-DEMA), which is placed near 24,445. On the upside, 25,000 will act as a key resistance level for the index in the short term. The Bank Nifty index opened with a gap down, witnessed selling pressure in the first half, but a late recovery helped the index recoup some losses, and it finally settled on a marginally negative note at 54,941. Technically, the index formed a hammer candle on the daily chart near 21-Day Exponential Moving Average (21-DEMA) support, indicating potential strength. On the downside, strong support is seen near 54,557 (21-DEMA), while short-term resistance is placed near 55,700 levels. Traders are advised to monitor these levels closely for potential trading opportunities,” he added.

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