Calculate your SIP ReturnsExplore

May Market Wrap: A Deep Dive into Nifty50’s Performance

01 June 20236 mins read by Angel One
Adani Enterprises outshined by giving a 30% return in the last month, and Dr Reddy was the worst performer, while Nifty Bank, and Nifty IT, both have yielded returns of 2.5% and 4.5%, respectively
May Market Wrap: A Deep Dive into Nifty50’s Performance
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Today, the Nifty 50 index opened at 18594.20, which was 39.65 points lower than its previous day’s closing of 18633.85. The market began correcting during the early morning trading session. Over the past two days, Nifty had been trading within a narrow range of approximately 80-90 points, with the range set between 18660 and 18580. However, today, in the first five-minute candle, Nifty broke this range with a significant red candle spanning around 68 points. 

During the afternoon trading session, Nifty made an attempt to recover from its day’s low, but the selling pressure from bears remained strong and still managed to recover only 50 points only. Ultimately, Nifty closed in red at 18534.40, down by 99.45 points or 0.53% compared to the previous day’s closing. Importantly, it filled the gap area between 18500 and 18580, which was created on May 29, 2023. 

At the start of May, Nifty began trading at 18124.80, which was a 59.8-point up from the previous month’s closing of 18065. On the last trading day of the month, Nifty closed at 18534.40, forming a significant monthly bullish candle on the charts. Throughout the month, Nifty delivered a return of 2.7% and is currently trading very close to its all-time high of 18887.60. Over the past three months, Nifty has provided an absolute return of 7.6%. Its 52-week high and low are 1887.60 and 15183.40. 

Turning attention to the other two indices, the Nifty Bank Index and the Nifty IT Index, both have yielded returns of 2.5% and 4.5%, respectively. Nifty IT displayed a recovery from its lows during May, while Nifty Bank achieved a new all-time high of 44498.60 on May 30, 2023. 

Top 10 High Weightage Stocks in Nifty50 Performance

Company Name CMP 1 Month Return
Reliance Industries Ltd 2469.9 3.20%
HDFC Bank Ltd 1610.85 -3%
ICICI Bank Ltd 949.15 3%
HDFC Ltd 2640.4 -3.50%
Infosys Ltd 1318.3 3.60%
ITC ltd 445.5 6%
TCS ltd 3289.5 3%
L&T ltd 2205.65 -7.30%
Kotak Mahindra Bank ltd 2014.35 2.80%
Axis Bank ltd 914.85 7.70%

Based on the provided data, it can be observed that high-weightage stocks have not performed well and managed to generate a return between 2% to 8% during this month, Both ITC Ltd and Axis Bank Ltd, delivered a return of 6% and 7.7%, respectively. On the other hand, L&T Ltd has experienced a negative return of 7.3%.

Top 5 Best Performers:

Company Name CMP Industry 1 Month Return 3-month return
Adani Enterprises Ltd. 2493.35 Metals & Mining 30.00 % 55.00 %
IndusInd Bank Ltd. 1283.15 Financial Services 12.40 % 17.30 %
Bajaj Finance Ltd. 6975.1 Financial Services 12.10 % 15.20 %
Hero MotoCorp Ltd. 2760.9 Automobile and Auto Components 11.30 % 12.80 %
Eicher Motors Ltd. 3678.3 Automobile and Auto Components 9.60 % 17.70 %

Top 5 Worst Performers:

Company Name CMP Industry 1 Month Return 3-month return
Dr. Reddy’s Laboratories Ltd. 4506.25 Healthcare -8.70 % 2.90 %
UPL Ltd. 683 Chemicals -8.40 % -2.40 %
Hindalco Industries Ltd. 407 Metals & Mining -7.40 % 0.60 %
Larsen & Toubro Ltd. 2212.5 Construction -7.30 % 4.20 %
JSW Steel Ltd. 700 Metals & Mining -4.50 % 4.40 %

On the daily timeframe, the Relative Strength Index (RSI) is currently at 64.99, while on the weekly and monthly timeframes, it stands at 61.80 and 63.11, respectively. Notably, the RSI remains above 60 on all major timeframes, which could be seen as a positive indication for the upcoming month. Additionally, Nifty50 is trading above key Moving Averages such as the 20-day, 50-day, 100-day, and 200-day averages on major timeframes.

From a technical perspective, Nifty 50 has strong support levels at 18450 and 18300, while it could encounter resistance around 18600 and 18800 before surpassing its all-time high. 

Looking at the current weekly expiry, which is set for June 1, the Call Open Interest is approximately 25.6 lakh, whereas the Put Open Interest stands at 21.45 lakh. Notably, there is significant open interest at the 18600 and 18700 Call strike prices, with 2.82 lakh and 2.67 lakh, respectively, and a considerable change in open interest of 1.38 lakhs at the 18600 level. On the Put side, there is substantial open interest at the 18500 and 18400 strike prices, with 2.25 lakh and 1.66 lakh, respectively, indicating these levels may act as immediate resistance and support for the upcoming expiry. The Put Call Ratio (PCR) for Nifty50 is currently 0.84, while the PCR for the June month expiry stands at 1.45, according to data from the National Stock Exchange. 

Given that the Nifty Bank recently broke its all-time high, there is significant potential for Nifty50 to achieve a new milestone by surpassing its own all-time high. Investors should closely monitor the movement of Nifty50 to take advantage of the potential upside in the market.


Open Free Demat Account!

Enjoy Zero Brokerage on Equity Delivery

Join our 2 Cr+ happy customers

Enjoy Zero Brokerage on Equity Delivery
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link

Enjoy Zero Brokerage on
Equity Delivery