The Indian benchmark index is off to a good start, according to Gift Nifty’s tendencies. The Gift Nifty was trading at a premium of around 35 points over the previous closing of the Nifty futures, at 22,585.
On the daily chart, Nifty 50 created a tiny negative candle next to the lengthy bear candle from the previous session.
This pattern on the chart suggests a range-bound market with a sell on rise opportunity. Nifty is presently trading between the 22,400 and 22,300 levels of support and is not holding onto its intraday gains. Higher peaks and bottoms are more significant. Nifty displayed weakness all the way down to the construction of a new higher bottom of the pattern after plunging precipitously from the new higher top of 22,794 levels on Friday. According to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti, “a still higher bottom reversal is not confirmed.”
There is a chance that the market may rise as long as the 22,300 level of support remains. According to Shetti, a move below the support could lead to further short-term losses.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Good OI Information
Regarding the Nifty Open Interest (OI) Data, Deven Mehata, a research analyst at Choice Broking, observed that the highest OI on the call side was at 22,500, followed by 22,700 strike prices, while the highest OI on the put side was at 22,500 strike price.
Nifty 50 Forecast
On May 6, the Nifty 50 index entered a narrow range movement with a weak bias and finished the day 33 points down.
Throughout the day, Nifty primarily moved sideways, ranging between 22,400 and 22,550. On the daily chart, the index closed above the 21-EMA (Exponential Moving Average), a short-term moving average. However, the sequence of red candles that followed suggests that there were more selling than buyers, giving the impression that the market is biassed negatively. As long as it remains below 22,500, sentiment may remain muted in the foreseeable future, according to Rupak De, Senior Technical Analyst at LKP Securities.
Forecast for the Bank Nifty
On Monday, the Bank Nifty index experienced rangebound trading and finished 28 points down at 48,895.
The Bank Nifty index experienced a sideways trading session during which bulls were able to hold the 49,000–48,900 support zone. A significant breach might lead to short-covering advances towards 49,500. Immediate resistance is observed at 49,300, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
On the other hand, he thinks that a notable break of the 48,900 barrier would lead to additional selling pressure in the direction of 48,400, which is where the 20-DMA is located.