Pre-market analysis report: The market has not yet recovered, despite a surge on May 10 following a prolonged decline following its record high last week. The consolidation is anticipated to continue as long as the Nifty holds 21,900, the low of the long bearish candle of May 9 which also corresponds with the rising support trendline. The index may encounter resistance at 22,200–22,300 levels, but a break of 21,900 could push it towards 21,775, the low of April, according to experts.

On May 10, the Nifty 50 gained 98 points to 22,055 and produced a tiny bullish candlestick pattern with a small upper and lower shadow on the daily charts, while the BSE Sensex increased 260 points to 72,665.

Technically speaking, this pattern suggests a little lull in the market following a steep collapse. The Nifty is currently trading near the critical trendline support of 21,900, and senior technical analysis analyst at HDFC Securities Nagaraj Shetti stated that there is still no sign of a higher bottom reversal pattern forming at the lows.

On the weekly chart, the Nifty displayed a lengthy bearish candle with a slight lower shadow. Nifty formed a lengthy bear candle last week, indicating negative bias, following the creation of a long-legged doji at fresh highs the week before.

Experts say on Pre-market analysis report

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According to Anand Rathi’s senior manager of equity research Jigar S. Patel, the index is getting close to the lower bound of an ascending channel, and breaking it might indicate more serious market concerns. “Looking ahead, a drop below 21,900, the previous swing low of 21,777, may induce market panic,” he stated.

In the meantime, it appears that the high volatility is continuing to fuel bearish actions against bulls. The fear indicator, the India VIX, has increased by 81% over the last 12 sessions to close at 18.47, the highest level since October 13, 2022.

Stocks in the news

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Eicher Motors

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Union Bank of India

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ICICI Bank

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Zydus Lifesciences

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