Pre-Market Analysis for Friday: Given the clear collapse of the 22,300 and 22,000 levels during the day, as well as the creation of a lengthy bearish candlestick pattern on the daily charts, bears don’t appear to be willing to relinquish the lead to bulls. Therefore, in the upcoming sessions, the Nifty 50 is expected to see more correction up to 21,800–21,750 levels, which correspond to the 100-day exponential moving average and the April low. If those levels are broken, 21,500 is the next level to watch on the downside; however, if it manages to hold those levels, the index may encounter resistance at approximately 22,100–22,200 levels, according to experts.
On May 9, the weekly F&O expiry day, the Nifty 50 fell 345 points, or 1.55 percent, to 21,958 while the BSE Sensex fell 1,062 points, or 1.45 percent, to 72,404.
“Nifty is expected to slide down further in the short term after breaking decisively below the immediate support of 22,300 levels on Thursday,” senior technical analysis analyst at HDFC Securities Nagaraj Shetti stated.
Senior technical analyst at LKP Securities Rupak De agrees that the trend appears to be very shaky and that there may be more declines ahead.
Given that the market has previously recovered well from this support, Nagaraj believes there is a greater chance that this lower level will see a small upward bounce in the upcoming sessions. “Immediate resistance is at 22,100 levels.”
Rupak perceives immediate resistance at 22,200 on the top end. “The market might remain sell on rise until it stays below 22,200.”
On Thursday, the wider markets were also severely and disappointingly damaged. Six shares fell for every share that rose on the NSE, and the Nifty Midcap 100 and Smallcap 100 indices fell by 1.9 and 2.8 percent, respectively.
In the meantime, volatility has been steadily increasing, which eventually improves the trend and puts bulls in a difficult situation. The fear index, or India VIX, increased 6.55 percent to close at 18.2, the highest level since October 17, 2022. This brought the overall upswing to 78.5 percent over the previous 11 sessions.
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Pre-Market Analysis for Friday-Bank Nifty
The Bank Nifty, which fell 533 points, or 1.11 percent, to 47,488 and continued to decrease for the seventh straight session, formed a lengthy bearish candlestick pattern on the daily timeframe, further strengthening the bears’ hold.
Additionally, on a closing basis, the Bank Nifty index crossed over the critical 50-day exponential moving average (EMA). According to Kunal Shah, senior technical & derivative analyst at LKP Securities, “the index is now eyeing its next immediate support at 47,400, and a breach below this level could intensify selling pressure towards the 47,050 mark, corresponding to the 100-day EMA.”
He believes that the index will encounter strong resistance at 48,000, the level of aggressive call writing, on the upside. “A decisive breakthrough above this resistance level may trigger short-covering moves towards the 48,500 mark.”
The pivot point calculator indicates that 47,417, 47,223 and 46,911 are the likely support points for the Bank Nifty index. Resistance on the higher end of the index might be found at 47,563, 48,235, and 48,547.
