Commenting on Nifty hitting all time high Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global said that We have witnessed robust buying activity in the Indian stock market, propelling the Sensex and the Nifty 50 to reach new record highs. The Nifty 50 surged by 1.8%, achieving a fresh record peak. This surge was accompanied by widespread buying, as evidenced by the BSE Midcap and Smallcap indices also hitting their respective record highs. Several stocks, including Bharti Airtel, Mahindra and Mahindra, Ashok Leyland, Eicher Motors, Tata Steel, Adani Enterprises, and Adani Ports, marked fresh 52-week highs during intraday trading.

Gandhi also added that Adding to the bullish sentiment was the participation of underperforming banks, which rallied and lifted the Nifty Bank out of its previous range. Notably, three of the top five contributors to the Nifty 50 were banking majors. Reliance Industries and Larsen & Toubro also contributed to driving the Nifty higher.

“This surge, marking the sixth consecutive day of gains, has resulted in the Nifty recording a 2.2% increase for the week, positioning it for its most impressive weekly performance in four months.,” said Gandhi

Commenting on the USD INR outlook Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said that Indian Rupee gained by 0.25% today on positive domestic markets and suspected intervention by RBI. RBI’s Rs. 2.11 lakh crore dividend to the Government also boosted market sentiments. Fresh FII inflows and a decline in crude oil prices also supported the Rupee. US Dollar strengthened as markets trimmed rate cut bets amid hawkish US Data and hawkish FOMC meeting minutes.

Choudhary also added. We expect Rupee to trade with a positive bias on positive domestic equities and overall weakness in crude oil prices. However, weak global markets and strong Dollar on hawkish US data may cap sharp gains. Traders may take cues from durable goods orders and revised consumer sentiment data from the US. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.30.

Shares of Vodafone Idea surged over 10% on Friday to hit intra-day high of Rs 15.70 on NSE, following a notable upgrade by brokerage firm UBS, elevating the telecom service provider’s rating from “neutral” to “buy” — the first such recommendation in almost a year.

Motilal Oswal reiterates its Neutral rating on the stock, maintaining a target price of Rs 4,210, based on 9 times the estimated EV/EBITDAR for FY26. 

Analyzing the stock, it is noted that it is currently trading at approximately 24 times the estimated earnings per share (EPS) for FY26, standing at Rs 187, and at 9.7 times the Enterprise Value to Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent (EV/EBITDAR). 

In a recent report by Motilal Oswal on InterGlobe Aviation (IndiGo), it was revealed that the company is strategically focused on expanding its international presence through partnerships and loyalty programs. 

In the fiscal year 2024, IndiGo served a total of 106.7 million customers, marking a net increase of nine passenger aircraft. With eight strategic partners, the company held a 27% international share in terms of Available Seat Kilometers (ASKs) during FY24. 

“We lower our FY25E core EPS by 11% as we build in Cenexi losses and higher tax rate, but raise our FY26E core EPS estimate by 3%. GLAND trades at 35.1x FY25E core EPS. We retain “Accumulate” with a target price of Rs 2,057, which is 31.6x FY26E core EPS plus cash per share. Further misallocation of capital and any reversal in the US generic market cycle will be key risks,” said Elara Securities on Gland Pharma.

ITC’s shares rallied to 2% hitting a 52-week high of Rs 3,453.70 after it reported its Q4 FY24 results. The brokerage houses largely maintained their rating on the stock. The company’s net profit came in at Rs 5,120.55 crore, a fall of 4% on year compared to Rs 5,335.23 crore posted in Q4 of FY23. The FMCG major’s revenue from operations came in at Rs 19,446.49 crore, marginally lower than Rs 19,484.50 crore during the same period last year.

Courtesy: NSE

Courtesy: NSE

The NSE Nifty 50 was up 6 points or 0.3% at 22,973.70, while the BSE Sensex was up 8.5 points or 0.01% at 75,426.57.

“We upgraded FY25 and FY26 EPS by 6% and 7%, respectively, led by margin expansion and higher other income. We raise our target price by 74% to Rs 340 from Rs 195 on 42x (from 27x) March 2025E P/E one-year forward multiple,” said Elara Securities. Capacity expansions would aid Bharat Electronics’ steady revenue growth amid rising opportunities while the margin may further improve led by mix and efficiencies. The brokerage house raised the rating to “Buy” from “Accumulate,” given the company’s positioning and capability in India’s growing defence sector.

The shares of Vodafone Idea rose 10% to an intraday high of Rs 15.45 from its previous close of 14.05 on the back of UBS raising its rating to “Buy” from “Neutral” for the first time in three decades.

Bharat Dynamics, Vodafone Idea, Fertilisers and Chemicals Travancore, and Indus Tower were the major gainers in the Nifty 50. While Paytm, Godrej Properties, Nykaa, Suzlon Energy, and Laurus Laboratories were the key losers in the Nifty 50 on May 24.

Courtesy: BSE

Courtesy: NSE

“Patterns allow for a revision of upside objectives to 23200-23350, but directional moving indicators as well as oscillators present a very credible set up for either very large swings or a drop. With this in perspective, upside prospects may be pursued as long as above 22870, but a penetration of 22795/733 may be taken as a signal towards a break down,” said Anand James, Chief Market Strategist at Geojit Financial Services.

“Nifty has decisively broken above the previous resistance zone of 22750 – 22800 and is now heading towards the upper end of the rising channel placed at 23100 – 23150. Beyond this, it can stretch towards 23510. The zone of 22750 – 22800 shall now act as a support as per the principle of role reversal. The Midcap Index made an all-time high on the 17th May, Nifty on 23rd May while the Bank Nifty is still lagging and well below its all-time high,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Hindalco, Tata Steel, JSW Steel, SBI, and Power Grid Corp of India were the top gainers in the Nifty 50. While Coal India, Hero MotoCorp, Adani Ports, Shriram Finance, and M&M were the major losers in the Nifty 50 on May 24.

The NSE Nifty 50 opened 0.16% lower at 22,931, while the BSE Sensex opened 0.16% lower at 75,293.71.

Aditya Birla Capital, Balarampur Chini Mills, Bandhan Bank, Hindustan Copper, Indian Energy Exchange, India Cements, Metropolis Healthcare, National Aluminium, Piramal Enterprises, PNB, and Zee Entertainment Enterprise were in the F&O ban list on Friday.

Foreign institutional investors (FII) bought shares net worth Rs 4,670.95 crore. However, domestic institutional investors (DII) bought shares net worth Rs 146.51 crore on May 23, 2024, according to the provisional data available on the NSE.

Asian markets declined on Friday morning, influenced by the overnight drop in the US market. The Asia Dow fell 0.25% to 3,448.48. The Hang Seng dropped 1.70% to 18,868.71. China’s benchmark Shanghai Composite edged down 0.02% to 3,115.88, and Japan’s Nikkei 225 decreased by 1.24% to 38,616.80.

“GIFT Nifty is facing bearish pressure this Friday morning, opening at 22960, down by 55 points. On Thursday, Nifty neared the 23,000 mark, driven by investor optimism about the current regime’s continuation in the upcoming general elections. However, Wall Street’s decline due to a hotter-than-expected manufacturing survey and concerns over the Federal Reserve’s interest rate decisions have dampened market sentiments. With the India VIX rising above 21, indicating increased volatility, the strategy is to stay nimble. Nifty’s key support is at 22507,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

On Friday morning, WTI crude prices were trading at $76.82, down 0.06%, while Brent crude prices were at $81.32, down 0.03%.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six major foreign currencies, inched up by 0.02% to 105.08.

The US market experienced a significant downturn, with the Dow Jones Industrial Average suffering its worst day. The Dow Jones dropped by 605.78 points, or 1.53%, to close at 39,065.26. Meanwhile, the S&P 500 declined by 0.74% to 5,267.84, and the tech-heavy Nasdaq Composite fell by 0.39% to 16,736.03. Despite Nvidia’s efforts, it couldn’t lift the broader market.