Quote on Pre-Market Comment by Mandar Bhojane, Research Analyst, Choice Broking Ltd
Below the Quote on Pre-Market Comment by Mandar Bhojane, Research Analyst, Choice Broking Ltd
Indian equity markets ended at their highest closing levels for the year on May 5, supported by strong foreign institutional inflows and positive sentiment driven by falling crude oil prices. The Sensex climbed 295 points or 0.4% to close at 80,797, while the Nifty 50 gained 114.45 points or 0.47% to end at 24,461.15. Broader indices outperformed, with the BSE Midcap rising 1.45% and the BSE Smallcap advancing 1.23%.
The recent rally has been fueled largely by renewed interest from foreign investors. Benchmark indices have now gained in 12 of the last 16 sessions, with both Sensex and Nifty 50 rising over 10% during this period. In the last 11 trading sessions alone, FIIs have pumped in more than ?38,300 crore, as per NSDL data, providing a solid foundation for the market's upward momentum.
From a technical perspective, the Nifty witnessed a strong opening but remained range-bound for most of the session before closing near the day’s high. Despite the gains, the index continues to face stiff resistance around the 24,600 mark. A decisive breakout above this level could pave the way towards 24,800, while on the downside, 24,300 is expected to act as immediate support, potentially offering a buying opportunity on dips.
Sectorally, the market breadth was strong, with most indices closing in the green. Auto and Energy sectors led the gains, while Bank Nifty and PSU Banks were the only laggards. The broader market witnessed strong participation, with Midcap and Smallcap indices outperforming the frontline benchmarks—indicating rising investor confidence beyond large-cap stocks.
Meanwhile, market volatility edged up slightly, with the India VIX rising by 0.44% to 18.34, signaling growing uncertainty among investors. Derivatives data indicates heavy Call open interest at 24,500 and 24,600, marking these as resistance levels. On the Put side, notable open interest at 24,300 and 24,000 suggests these are key support zones in the near term.
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