Domestic equity markets closed in the red in trade Tuesday as a slide in banking, financial, and auto sectors offset the optimism from favourable domestic inflation data and persistent foreign institutional buying in equities. The 30-share BSE benchmark Sensex closed 413 points or 0.66 percent lower at 61,932. The broader NSE Nifty declined 112 points or 0.61 percent to settle at 18,286.

Share Market Live

NSE

Asian shares gave up early gains today as the latest data showed China’s economy is weaker than expected, with domestic demand failing to bounce back as much as hoped for after the Covid-19 pandemic. Traders remain cautious and reluctant to make significant moves amid worries over a standoff on raising the US government's $31.4 trillion borrowing limit. European shares were little changed today as investors' concerns resurfaced that interest rates in the eurozone would stay higher for longer to curb inflation.

Private weather forecaster Skymet has said that the arrival of the monsoon in India might be delayed this year. In a tweet, Jatin Singh, Managing Director, Skymet said that monsoon onset looks "feeble and delayed." He also said that hot weather will continue deep into June this year.

Nifty formed a bearish Engulfing type of pattern on daily charts on May 16. Markets seem to be running out of steam as the Q4 results are soon coming to an end. 18194-18390 could be the band for the Nifty in the near term, said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty view by Vaishali Parekh, Vice President — Technical Research, Prabhudas Lilladher Pvt Ltd

"Nifty found resistance near the 18400 zone and slipped with profit booking witnessed to close in the red near 18300 with some of the frontline stocks cooling shedding their gains. The 18200 level would be the crucial support zone and upside now 18450 has become the resistance barrier which need to be breached to carry on the upward journey ahead."

Bank Nifty

"Bank Nifty also witnessed a halt near the peak zone of 44150 and taking a breather with some profit booking witnessed ended below the 44000 zone near 43900 levels. The index has the important support zone near 43700 levels breaching which the short-term bias can turn negative. The support for the day is seen at 18200 levels while the resistance is seen at 18400 levels. Bank Nifty would have the daily range of 43500-44300 levels."

Stock picks

Sharing as the top picks for Wednesday, Vaishali Parekh of Prabhudas Lilladher has recommended three stocks to buy today, which are Data Patterns (India) Ltd, Restaurant Brands Asia Ltd and Borosil Renewables Ltd.

Data Patterns (India) Ltd: Buy Data Patterns (India) at Rs 1,598, Stop loss at Rs 1,570, Target price Rs 1,660

Restaurant Brands Asia Ltd: Buy Restaurant Brands Asia at Rs 107, Target price Rs 113, Stop loss Rs 104

Borosil Renewables Ltd: Buy Borosil Renewables at Rs 515, Target price Rs 535, Stop loss Rs 505

Nifty Spot Index

Support – 18200/18150

Resistance - 18400/18450

Bank Nifty Spot Index

Support – 43500/43450

Resistance – 44300/44350