BackNifty 50, Sensex today: What to expect from Indian stock market in trade on May 2
The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,740 level, a premium of nearly 25 points from the Nifty futures’ previous close.
PremiumThe Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open in the green on Thursday tracking mixed cues in the global markets.
The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,740 level, a premium of nearly 25 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity indices ended lower with the Nifty 50 holding above 22,600 level.
The Sensex fell 188.50 points to close at 74,482.78, while the Nifty 50 settled 38.55 points, or 0.17%, lower at 22,604.85.
The Indian stock market exchanges BSE and NSE were shut on Wednesday on account of Maharashtra Day.
Nifty 50 formed a small negative candle on the daily chart with upper shadow.
“Technically, this pattern signals presence of crucial overhead resistance in the market around 22,800 levels. The larger degree of higher tops and bottoms is intact and Nifty is currently placed to form a new higher top of the pattern. We need reasonable weakness from here to call this a top reversal pattern," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
The ascending channel is again coming into play on the daily chart, as the Nifty is currently placed near the upper end of the channel around 22,800 - 22,850 levels. Further decisive upmove could only occur on a sustainable move above 22,850 - 22900 levels, Shetti added.
He believes that Nifty having placed at the hurdles, possibility of minor downward correction can’t be ruled out from the highs in the short term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,500 level, suggesting potential support, while significant OI concentrations on the call side are observed at 22,800 and 23,000 levels, approaching all-time highs, said Mandar Bhojane, Research Analyst at Choice Broking.
He suggests traders and investors to consider buying opportunities during Nifty and Bank Nifty dips and to implement a suitable stop-loss strategy below the mentioned support levels.
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Nifty 50 Prediction
The Nifty 50 index shifted into high volatility of up and down swings on April 30 and closed the day lower by 38 points. It hit a record high of 22,783.35 during the day.
“Nifty witnessed selling pressure as it encountered resistance near the previous swing high, resulting in a weak closing. Other indicators such as the 20-day Simple Moving Average (SMA) and the 50-day SMA are positioned below the index value, suggesting that the ongoing positive trend remains intact. The Relative Strength Index (RSI) also indicates a bullish crossover," said Rupak De, Senior Technical Analyst, LKP Securities.
Over the next few days, he believes the trend in the headline index might remain sideways unless it breaks above the all-time high of 22,783. On the downside, immediate support is placed at 22,500, below which the index might decline further.
Bank Nifty Predictions
The Bank Nifty index declined 578 points from record high levels near the 50,000 mark and ended 27 points lower at 49,397 on April 30.
“The Bank Nifty witnessed a volatile trading session during the expiry day, with bulls dominating the first half and bears taking control in the second half. Although the index fell short of reaching the 50,000 mark, the overall sentiment remains bullish," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Shah believes dips in the index should be seen as buying opportunities, especially with strong support noted around the 49,000 mark, where the highest open interest lies on the put side.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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