Table of Contents
Today marks a significant day for India as the General Elections (Lok Sabha) take place. In observance of this national event, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed. This closure affects all segments, including the equity segment, equity derivative segment, Security Lending and Borrowing (SLB) segment, currency derivatives, commodity derivatives, and electronic gold receipts segments. This blog explores the implications of this stock market holiday and provides an overview of the market’s performance leading up to this event.
Market Closure Details
Segments Affected
As per the BSE website, the stock market holiday will see the closure of the following segments:
- Equity Segment
- Equity Derivative Segment
- Security Lending and Borrowing (SLB) Segment
- Currency Derivatives Segment
- Commodity Derivatives Segment
- Electronic Gold Receipts Segment
Total Stock Market Holidays in May 2024
Including this holiday, the month of May 2024 features a total of 11 stock market holidays, which encompass regular Saturdays and Sundays.
Market Performance Recap
NSE Nifty and BSE Sensex
In the trading session prior to the holiday, the NSE Nifty closed 36 points higher, marking a 0.16% increase to reach the 22,502 level. Similarly, the 30-share BSE Sensex rose by 89 points or 0.12%, settling at 74,006. This positive movement came during a special trading session held on May 18, 2024.
Mid-Cap and Small-Cap Shares
Mid- and small-cap shares also demonstrated strong performance. The Nifty Midcap 100 index increased by 0.51%, while the Nifty Smallcap 100 rose by 0.82%. These gains indicate robust investor interest and confidence in the mid and small-cap segments.
Sectoral Indices
All 16 sectoral indices on the NSE ended in the green. Notable outperformers included:
Nifty Media: Up by 1.24%
Nifty Consumer Durables: Up by 0.48%
Nifty Oil & Gas: Up by 0.47%
Nifty Realty: Up by 0.78%
Individual Stock Performance
Frontline stocks on the BSE saw notable gains. Companies such as Nestle India, L&T, TCS, Power Grid, Tata Motors, SBI, Airtel, HUL, and HCL Tech recorded gains of up to 2.33%.
Market Breadth
Out of a total of 3,613 stocks traded on the BSE during the last session, 2,415 stocks ended with gains, while 1,073 stocks closed lower. The remaining 125 stocks remained unchanged, indicating a broadly positive market sentiment.
India VIX
The India VIX, also known as the fear index, increased by 3.67%, reaching the 20.53 level. This rise in volatility index suggests heightened market uncertainty and investor caution leading up to the holiday.
Market Reopening
The domestic bourses will reopen on Tuesday, May 21, 2024. Market participants will closely watch the reopening to gauge the market’s reaction to the election results and any other significant developments over the holiday.
Nifty Outlook
Technical Analysis
Rupak De, Senior Technical Analyst at LKP Securities, provided insights into the Nifty’s performance and outlook:
Current Position: Nifty closed above the 22,500 mark for the first time in several days, remaining within the trading channel.
Candle Analysis: The formation of a small-bodied candle on daily charts indicates uncertainty about the future price direction.
Options Writing: Heavy options writing in both CALL and PUT at the 22,500 level suggests a pivotal point. Traders should be cautious in the initial trading hours post-holiday to confirm any directional move.
Support and Resistance Levels
Support: Visible at 22,400
Resistance: A sustained move above the current level could propel the index towards 22,600 and higher in the short term.
Indian Stock Market Special
Conclusion
The closure of BSE and NSE for the General Elections (Lok Sabha) is a significant event, reflecting the importance of the democratic process in India. The stock market’s performance leading up to the holiday has been positive, with gains across major indices and sectors. As the markets reopen, investors will be keenly observing the impact of the election results and any subsequent economic and political developments.
For traders and investors, it’s essential to stay informed and prepared for potential market movements. The guidance provided by market analysts and the observed support and resistance levels will be crucial in navigating the post-holiday trading environment.
Stay tuned for further updates and insights as we continue to monitor the market’s response to this pivotal moment in India’s political and economic landscape.
