The Indian stock market is poised for a promising start on Monday, buoyed by positive signals from global markets. With the Nifty 50 showing signs of strength, early indicators suggest that it could open higher, reflecting enthusiasm among investors. The Gift Nifty, an important benchmark, was reported trading around 24,515, indicating a premium of nearly 115 points over the previous Nifty futures close.
Market Overview
On Friday, Indian equity indices closed with modest gains. The Sensex climbed by 259.75 points or 0.32%, finishing at 80,501.99, while the Nifty 50 edged up by 12.50 points or 0.05%, settling at 24,346.70. This upward momentum sets a positive tone for today’s trading session.
Analyzing Nifty OI Data
Current Nifty options data reflects a cautious sentiment in the market. The open interest at the 24,500 call strike has surged to 79.09 lakh contracts, establishing it as a significant short-term barrier. Conversely, the 24,000 put strike has garnered substantial interest with 69.44 lakh contracts, marking it as a crucial support level.
- Resistance Levels: Strong positioning around 24,400–24,500 suggests that volatility may remain high.
- Put-Call Ratio: The ratio has dipped from 0.71 to 0.68, indicating a shift towards more defensive strategies as selling pressure mounts.
- Max Pain Level: Steady at 24,350, suggesting no clear breakout direction.
Nifty 50 Predictions for Today
The Nifty 50 attempted an upside breakout on May 2, with a slight increase after retracting some gains. According to Nagaraj Shetti, a Senior Technical Research Analyst, this could signal a potential breakout above the 24,500 – 24,600 resistance zone.
Should the index surpass these levels, it could rally toward 24,800 – 25,000. However, should the market falter, support may be found around 24,000 – 23,800.
Puneet Singhania, Director at Master Trust Group, emphasizes that the Nifty 50 consistently remains above the 24,000 mark, a significant psychological level. Additionally, it trades above its 21-day, 55-day, and 200-day exponential moving averages, indicating sustained bullish momentum.
Key Resistance and Support Levels
- Immediate Resistance: 24,600
- Support Levels: 24,000 and 23,700
A buy-on-dips strategy is encouraged, but traders should remain vigilant about potential market fluctuations.
Bank Nifty Outlook
The Bank Nifty index ended Friday slightly up by 28.20 points or 0.05%, closing at 55,115.35. It formed a doji candle, which hints at ongoing consolidation. Analysts predict that the Bank Nifty may continue to consolidate within the 54,000 – 56,000 range until overbought conditions are resolved.
Bajaj Broking Research notes that a decisive move above the recent high of 56,098 could lead to further gains, targeting 56,800 in the coming weeks.
Key Levels for Bank Nifty
- Resistance: 56,000
- Support: 54,450
If the index breaks below 54,450, it could trigger fresh selling pressure. Conversely, a strong performance above 56,100 may lead to new all-time highs, particularly driven by major players like HDFC Bank and ICICI Bank.
Conclusion
In summary, traders can expect a dynamic day ahead for both the Nifty 50 and Bank Nifty. Keeping an eye on key resistance and support levels will be crucial as the market navigates through this cautious phase. As always, a balanced approach with a focus on both long-term trends and short-term volatility will be essential for success in today’s trading environment.
