Inflation Cools, Market Cheers: What’s Next for Nifty?

Dalal Street Rebounds on Inflation Relief

Market Cheers as cooling inflation numbers give traders a much-needed breather.

After Tuesday’s brutal selloff, benchmark indices staged a mild recovery—Nifty climbed 88 points to 24,666, and Sensex added 182 points to close at 81,330. The trigger? A double dose of disinflation: retail inflation eased to 3.16% (a 5-year low), while wholesale prices softened to just 0.85%, reinforcing hopes that a rate cut could finally be on the table.

Metal stocks led the bounce, with Tata Steel up nearly 4%, while banks continued to underperform, dragging down the Nifty Bank index by 0.25%.

With broader market breadth turning positive and rate-cut optimism heating up, all eyes are now on whether this recovery has real legs—or is just a sugar rush.

Up next: the news that moved markets—and the stocks you should care about.

Nifty Outlook – Market Cheers, But Resistance Holds

Market cheers were back on Dalal Street as the Nifty ended May 14 at 24,666.90, up 88.55 points (+0.36%). But while sentiment improved, the index still couldn’t break above the crucial ₹24,849–₹24,900 resistance zone.

The price action shows strength, but not conviction yet. Until we get a clear close above ₹24,900, bulls are just circling the runway.

Key Levels to Watch

• Resistance Zone: ₹24,849–₹24,900
• Support Zone 1: ₹24,390–₹24,420
• Support Zone 2: ₹23,939–₹24,000
• Gap Support: ₹23,800–₹23,900

What to Expect in Today’s Trade (May 15):

• Bullish Scenario: If Nifty sustains above ₹24,700, another attempt at ₹24,900 is likely. A breakout could push it toward ₹25,200.
• Bearish Scenario: A fall below ₹24,420 may drag it to ₹24,000. Below ₹23,800, the tone shifts negative.

Spotlight of the Day

HCL–Foxconn JV Gets Cabinet Nod for ₹3,700-Cr Chip Unit

In a major step toward semiconductor self-reliance, the Union Cabinet has approved a ₹3,706 crore project for setting up India’s sixth semiconductor unit—a joint venture between HCL Technologies and Foxconn.

The upcoming facility will be located near Jewar Airport in Uttar Pradesh and will manufacture display driver chips—crucial for mobile phones, laptops, automotive displays, and other digital devices. With production capacity targeted at 36 million chips per month, the plant is expected to go commercial by 2027.

This isn’t just another infrastructure project—it’s a strategic leap under the India Semiconductor Mission, aiming to reduce dependency on imported chips and attract global supply chains to Indian soil.

Impacted Stocks:

HCL Technologies (NSE: HCLTECH)

• Positive sentiment may build around HCL’s hardware and semiconductor diversification.
• Long-term earnings visibility could improve as India’s domestic chip ecosystem matures.

Foxconn India (via partners like Bharat FIH, not directly listed)

• While not listed independently, Foxconn’s growing India presence may benefit contract manufacturers and associated suppliers.

Semiconductor Ecosystem Beneficiaries

• Keep an eye on companies involved in chip design (Tata Elxsi), testing (SPEL Semiconductor), and equipment supply (ASM Technologies).
• The government’s nod may trigger speculative buying in semiconductor-themed stocks.

News & Impacted Stocks

1. Inflation Drops, Rate Cut Bets Rise

Retail inflation for April eased to 3.16%—the lowest since July 2019—and wholesale inflation (WPI) fell to 0.85%, reinforcing hopes of a repo rate cut in June. Softening fuel and manufactured goods prices drove the slide.

Impacted Stocks:

• Rate-sensitive sectors like auto, real estate, and consumer durables may see renewed investor interest.
• Bond proxy plays such as HDFC Ltd or LIC Housing could benefit from falling yields.

2. Eicher Motors Shifts Gears with Q4 Beat

Eicher Motors posted a strong Q4 with ₹1,362 crore profit (+27% YoY), driven by premium-bike demand from Royal Enfield. The company also announced a ₹70 dividend, cheering shareholders.

Impacted Stock:

• Eicher Motors could see strength in the coming sessions, especially if volumes hold near breakout levels.

3. India’s First 3nm Chip Design Centres Go Live

Renesas Electronics opened two design hubs in Noida and Bengaluru focused on 3-nanometre chip development, marking India’s entry into cutting-edge semiconductor IP. This comes ahead of more global fab investments under the India Semiconductor Mission.

Impacted Stocks:

• Tata Elxsi, SPEL Semiconductors, and other design-linked tech firms could benefit from the upcycle in chip R&D.

4. PayU Gets Final RBI Nod for Payment Aggregation

PayU Payments secured full payment aggregator authorisation from RBI under the PSS Act. This allows it to scale beyond the in-principle license granted in 2022.

Impacted Stocks:

• Competitors like Razorpay, PhonePe, and listed players in the fintech value chain may face increased competition.
• Sentiment-positive for the broader fintech ecosystem and PE-backed payment startups eyeing IPOs.

5. JSW One Platforms Turns Unicorn with ₹340 Cr Raise

JSW One Platforms, a B2B industrial e-commerce platform, became India’s third unicorn of 2025. The funding, amid a weak startup cycle, highlights investor preference for industrial-tech over consumer apps.

Impacted Space:

• This strengthens confidence in logistics tech, infra-linked SaaS, and supply-chain startups.
• Could also draw IPO buzz toward companies like Infra.Market and OfBusiness.

6. Tata Elxsi Deepens Tie-Up with Mercedes-Benz

Tata Elxsi and Mercedes-Benz R&D India will jointly develop software-defined vehicle platforms. This extends their 10+ year relationship into AI, data, and autonomous systems.

Impacted Stock:

• Tata Elxsi gained 2.5% and could attract more institutional flows as automotive software becomes a growth vertical.

7. Reliance’s ₹500 Cr Asian Paints Bet Now Worth ₹10,500 Cr

A 2008 investment by Mukesh Ambani in Asian Paints (4.9% stake) has turned into a 24x multibagger, now valued at ₹10,500 crore. Buzz around a possible stake sale picked up, though RIL has not confirmed anything.

Impacted Stock:

• Asian Paints may see short-term volatility if any part of the stake is offloaded. Long-term narrative remains intact.

8. India Tops BofA Asia Fund Manager Survey

According to BofA, 42% of fund managers are now overweight on India—surpassing Japan for the top spot. Fund managers cited supply-chain shifts and tariff advantages as key drivers.

Impacted Themes:

• Strengthens bullish bias on manufacturing, defence, and infrastructure-linked names.
• Reflects improving foreign sentiment toward India-focused ETFs and midcap mutual funds.

Stock in Technical Radar: Rainbow Children’s Medicare Ltd

Rainbow seems to be gearing up for a healthy bounce—both literally and on the charts. After a soft decline, the stock has now formed a hammer-like candle around a key support zone near ₹1,340–₹1,350. That’s often a sign of bullish reversal, especially when supported by decent volume—as is the case here.

Technical Zones to Watch:

Support Zone: ₹1,349–₹1,350

• Tested multiple times this month.
• The hammer pattern at this zone signals strong demand.
• If this support breaks, downside opens up toward ₹1,300.

Resistance Zone: ₹1,416

• Price was rejected here in early May.
• Breakout above this would trigger fresh bullish momentum.

Medium-Term Target: ₹1,570–₹1,575

• Once ₹1,416 is crossed, there’s minimal resistance until April’s high.

Strategy Insight:

To keep risk in check, maintain a 1:2 risk-reward ratio:

Trade Bias	Entry	Stop-Loss	Target Zone	R:R Ratio
Swing Buy	₹1,375–₹1,385	₹1,340	₹1,570–₹1,575	~1:2

As long as the stock holds above ₹1,340, dips toward support could offer favorable entries. A daily close above ₹1,416 would confirm strength—and a breakout move could be swift.

Small Cap of the Day: Alivus Life Sciences Ltd

Current Price: ₹1,181
Market Cap: ₹14,506 Cr

Alivus Life Sciences isn’t just another pharma stock—it’s a focused API powerhouse backed by Nirma Group, with a stronghold in high-value, chronic therapeutic APIs and contract manufacturing (CDMO). The business evolved from Glenmark Pharma’s in-house API unit and was carved out in 2019, going public in FY22.

The company’s value lies in its non-commoditized product strategy, targeting niche segments across oncology, cardiovascular, and CNS therapies, while offering end-to-end CDMO services to specialty pharma players.

Business Highlights:

• Aims to move up the value chain from APIs to CDMO-led solutions.
• Strong export presence, backed by clean regulatory track record.
• Low debt, high margin profile makes it attractive as a steady compounder in the specialty pharma space.

Key Financial Ratios:

Metric	Value
P/E Ratio	32.8
Book Value	₹207
Dividend Yield	1.91%
ROCE	28.1%
ROE	21.1%
Debt-to-Equity	0.01
Operating Margin (OPM)	27.5%
Net Profit Margin (NPM)	21.6%
EV/EBITDA	21.6
Cash & Equivalents	₹446 Cr
Inventory Turnover	1.70
EPS Growth (3-Yr)	–52.5%
5-Yr ROE Avg	30.9%

With its near debt-free structure, high margins, and Nirma backing, Alivus is a small-cap stock that’s quietly scaling in a space often dominated by larger players. One to keep on the watchlist as CDMO demand grows.

Final Thought

From inflation cooling to tech partnerships and pharma breakthroughs, market cheers are not just about numbers—they reflect confidence slowly returning across sectors. But let’s be real: this isn’t an “all-clear” signal just yet. Nifty is still dancing below a tough ceiling, global cues remain fragile, and earnings season has more surprises in store.

In times like these, having a reliable, real-time trading setup matters more than ever.

That’s where Angel One steps in—with smarter tools, deeper insights, and lightning-fast execution across web and mobile. Whether you’re tracking breakout charts or monitoring bond yields, it’s built for traders who don’t just react—but plan ahead.

So while the markets stay unpredictable, your strategy doesn’t have to.

Related Articles

Virat Kohli’s Investment Journey: From Cricket Legend to Business Mogul