Stock market update: With steadily rising volatility and the emergence of yet another negative candle on the daily charts, the market trend shifted in favor of bears. The consolidation may continue in the upcoming sessions with obstacles on the higher side at 22,600 levels as long as the Nifty 50 sustains 22,300, the low of the extended bull candle of April 25, although experts warned that a break of 22,300 might increase the likelihood of short-term weakness.

The Nifty 50 dropped 33 points to 22,443 and established a bearish candlestick pattern on the daily timescale in addition to a long bear candle with lower highs development on May 6, while the BSE Sensex increased 17 points to 73,896.

In rangebound action, this chart pattern suggests a sell-on-rise opportunity, according to a senior technical research analyst at HDFC Securities Nagaraj Shetti.

He added that although the Nifty was displaying weakness down to the development of a new higher bottom of the pattern after plunging rapidly from the new higher top of 22,794 levels last Friday, a higher bottom reversal was not yet established.

Relative strength index (RSI) is biased lower on a daily basis, indicating weakness as well. Therefore, “important levels to monitor are 22,300, which is the immediate support level, and 22,550, which is the resistance level, and 22,600. It would be wiser to use a sell-on-rise strategy up until the index reaches 22,600, according to Samco Securities technical analyst Om Mehra.

The Nifty Midcap 100 index dropped by 0.5 percent, while the Smallcap 100 index dropped by 1.5 percent, indicating that the larger markets were also experiencing pressure.

For the seventh straight session, the volatility rose, which made things uncomfortable for the bulls and favored the bears. The fear index, the India VIX, increased by 13.56 percent in eight days to close at 16.6, the highest level since February 1, 2023.

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Stock market update- stocks in the news

Novelis Inc.

This Hindalco Industries subsidiary, which provides aluminum solutions, reported a net income of $166 million for the March FY24 quarter, up 6% from the same period the previous year. Net income, excluding special items, increased by 2% year over year to $179 million. Nonetheless, for the fourth quarter of the fiscal year 2024, net sales fell 7% year over year to $4.1 billion, mostly due to lower average aluminum prices that were only slightly offset by increased total shipments.

Gujarat Gas

Due to a drop in spot gas prices and a rise in volume, the city gas distribution firm saw an 86 percent gain in net profit from the previous quarter to Rs 409.5 crore for the quarter that ended in March of FY24. For the quarter, revenue from operations (minus excise duty) increased by 5.2% sequentially to Rs 4,134.2 crore.

Lupin

The multinational pharmaceutical business reported a consolidated net profit of Rs 359.4 crore for the fourth quarter of the 2024 fiscal year, which represents a 52.3 percent increase over the same period in the previous fiscal year. For the quarter, revenue from operations reached Rs 4,960.8 crore, up 12% year over year.

Gujarat Fluorochemicals

The chemical company said that its consolidated net profit for the March FY24 quarter was Rs 101 crore, a significant decline of 70% from the same time the previous year. The quarter’s operating revenue of Rs 1,133 crore represented a 23% decrease from the same time in the previous fiscal year.

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