Pre-Market Analysis Today: The market is still firmly held above the lower end of the ascending channel, which is currently at 22,150 and may serve as a crucial short-term support level for the Nifty 50. The index actually approached the same levels during the day before rising again and closing over the 50-day EMA, which is an exponential moving average that is situated at 22,243. As a result, experts predict that the index will stabilize above the support levels of 22,150 and that it will encounter resistance in the next few days at levels of 22,400–22,500. If the index breaches this support, however, the decline might continue below the 22,000 mark.
The Nifty 50 remained stable at 22,302.5 on May 8 and formed a small bullish candlestick pattern with minor upper and lower shadows, resembling a high wave pattern on the daily charts, albeit not exactly the same one, suggesting that there might be a rebound. The BSE Sensex had dropped 45 points at 73,466, while the Nifty 50 was up 45 points at 22,302.5.
Pre-Market Analysis Today-Technical Analysis
Technically, nothing has changed, but there is one encouraging development: the price is holding at a critical support level, which corresponds with a bullish gap and a 61.8 percent retracement of the rise from the lows in April. Prices defended these important levels because of the oversold intraday conditions, according to Angel One technical expert Rajesh Bhosale.
In the immediate future, he believes the key will be how prices respond to the 22,150–22,100 level; a breach there might indicate the end of the “Rising Channel,” which could cause a further drop towards 22,000 and could even test the April lows of 21,800.
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Given the better overall market conditions observed on Wednesday, Bhosale suggests intraday traders to focus on stock-specific movements in such a scenario. Meanwhile, positional traders may see this bounce as a chance to reduce long positions, particularly as the market nears the results of the Lok-Sabha election.
The Nifty Midcap 100 and Smallcap 100 indices performed better on the front of the wider markets, increasing by 0.7 and 0.6 percent, respectively.
The fear index, or India VIX, continued its upward trajectory for the tenth day in a row, rising 0.42 percent to 17.08 from 17.01 levels. It increased by about 67 percent in just ten days, placing the bulls in an uneasy situation.
According to the pivot point calculation, resistance is anticipated for the Nifty 50 at 22,319, 22,399, and 22,469 points. On the downside, the index can find instant support at 22,215, then 22,172, and 22,102 points.
For the sixth straight day, the Bank Nifty continued its downward trajectory, falling 264 points to 48,021, and creating a tiny bearish candlestick pattern on the daily charts. The index recovered intraday after finding support at the 61.8 percent Fibonacci retracement, which was located at roughly 47,850.
“The 50EMA coincides with 47,770, which is the next significant support level for the index,” stated Kunal Shah, LKP Securities‘ senior technical and derivative analyst.
He believes that 48,250 is immediate resistance on the upswing. “A decisive breach above this level could propel the index towards 48,400-48,500, where Call writing activity is evident.” He stated.
