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Informist, Tuesday, May 6, 2025

By Akash Mandal

MUMBAI – Benchmark indices are likely to move in a narrow range in the next 2-3 days, analysts said. There could be profit booking at higher levels Wednesday, with some analysts expecting indices to fall a bit in the short term before rising again. Corporate earnings will continue to influence the direction the market will take.

"On the technical front, the index formed a bearish candle on the daily chart, signalling hesitation at higher levels and continued range-bound movement," Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities, said. Salvi believes the Nifty 50 could fall further towards the 24000 levels, which could be an attractive buying opportunity for traders.

On Tuesday, the Nifty 50 ended lower by 81.55 points, or 0.3%, at 24379.60 points. The BSE Sensex fell 155.77 points, or 0.2%, to end at 80641.07 points. Indices had begun Tuesday's session on a positive note and opened marginally higher, but the Nifty 50 soon fell below 24400 points as investors booked profits at higher levels. For Wednesday, analysts pegged the support for the 50-stock index near 24000 points and the resistance at 24400-24450 levels.

"We are of the view that as long as the market is trading below 24500/81000, the weak sentiment is likely to continue," Shrikant Chouhan, head of equity research at Kotak Securities, said in a note. The Nifty 50 could fall back to the 24250 levels on the lower side, Chouhan said.

The markets are likely to consolidate for a few weeks and may rise further after that, Vikas Jain, head of research at Reliance Securities, said. "The market could rise to the 24800-25000 levels in the next few weeks... we are of the view that the Nifty (Nifty 50) will rise to near its record high levels around October," Jain said. While not much has changed fundamentally in the market, valuations are more attractive as traders have rolled over to the new financial year, he said.

Investors will also monitor commentary from US Federal Reserve Chair Jerome Powell. This is the Federal Open Market Committee meeting after US President Donald Trump imposed tariffs in April. The Fed is likely to be hawkish, but more in the direction of an extended pause than a potential hike, Dow Jones Newswires reported Christian Scherrmann, chief US economist at DWS, as saying in a note. According to the CME Fedwatch tool, nearly 97% of the traders expect the Fed to hold rates steady Wednesday.

Among the Nifty 50, Coal India will report its March quarter earnings Wednesday. The company is expected to report subdued earnings in the March quarter due to flat volumes and a decline in its average price realisation per tonne of coal sold. The stock has fallen in four of the last five sessions in the run-up to its earnings, declining nearly 5%. 

The stock is likely to move in the range of INR 340-INR 410 Wednesday, with the direction looking negative on the technical charts, derivative analysts said. Tuesday, shares of the company ended nearly 2% lower at INR 378.25 on the National Stock Exchange. 

Dabur India, Punjab National Bank, APL Apollo Tubes, Housing & Urban Development Corp., Tata Chemicals, Voltas, and MRF will also report their March quarter earnings Wednesday.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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