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Informist, Monday, May 19, 2025

By Akash Mandal

MUMBAI – Benchmark indices are likely to move in a narrow range Tuesday as they continue to cool off after last week's sharp gains, analysts said. While the outlook remains positive for the near term, analysts believe the indices may consolidate for a while before continuing their upward journey. Options data suggests that the Nifty 50 is expected to face selling pressure above 25000 points, analysts said. Investors will also keep parsing the March quarters earnings.

There is likely to be some selling for profit in early trade Tuesday, but the indices are expected to recover after the decline, Anshul Jain, head of research at Lakshmishree Investment and Securities, said. He believes the trend remains positive in the near term with foreign investors consistently buying Indian equities, and any fall in the benchmarks will be capped by the bullish sentiment.

Nagaraj Shetti, senior technical research analyst at HDFC Securities, also expects the market to consolidate for a while. "A small negative candle was formed on the daily chart, which is indicating a consolidation movement in the market... present consolidation or minor weakness is expected to form another higher bottom in the market," Shetti said in a note. "The present choppy movement is expected to end in the next 1-2 sessions before a decisive upside breakout again."

Monday, the Nifty 50 ended at 24945.45 points, down 74.35 points or 0.3%, and the BSE Sensex closed at 82059.42 points, down 271.17 points or 0.3%. For Tuesday, analysts expect the 50-stock index to take support at 24900-24800 points and face resistance at 25100-25250 points.

For now, all major negatives for the market are in the past and the indices are likely to move in a narrow range with a positive bias till July, when the impact of reciprocal tariffs by the US will start showing up in macroeconomic data, Sunny Agrawal, head of research at SBICAPS Securities, said. The current market is moving in a "bottom-up" manner, which means traders are looking at specific stocks for bargains instead of going big on any particular sector, he said.

On the earnings front, investors will react to the earnings of Bharat Electronics and Power Grid Corp. of India, which will both report their earnings for the March quarter later Monday. Tuesday, only one Nifty 50 constituent is scheduled to report its quarterly result--Hindalco Industries. The company's net profit is likely to rise 44% on year to INR 45.60 billion on the back of higher aluminium prices and improved performance by its US-based subsidiary Novelis. The stock is seen moving in a range of INR 620-INR 700 in the near term, analysts said. NHPC, Zydus Lifesciences, Torrent Pharmaceuticals, United Spirits, Dixon Technologies (India), Max Healthcare Institute, and Solar Industries India will also report their earnings for the quarter Tuesday.  End

Edited by Rajeev Pai

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