On last Friday, Nifty lost 172 points, Bank nifty lost
307 points, and sensex lost 732 points. IT, Bank, Oil & Gas were the top
losers.
Nifty closed at 22475.85, made a low of 22348.05 after
hitting all time high. As per daily chart of Nifty, it had a resistance at
22800 level. Due to heavy selling pressure it reversed from that point and made
a big bearish engulfing candle which has engulfed previous three candles which
indicates that Nifty reaches in bearish zone. Now it has good support at
22300 level which if broken we can see heavy selling in Nifty in coming days.
Buying in Nifty only can be made above 22550-22600 level.
Bank nifty on last Friday closed at 48923.55, made a low of
48659.70.Bank nifty already in selling zone. As per Bank nifty chart in daily
time frame, it was following a channel. But on Friday, it took resistance from
the top of the channel. Now, buying in Bank nifty only can be done above 49200
level, if it can trade decisively above the level.
Now it is very important to watch for the lows of Friday of both the Nifty and Bank nifty. If the lows are broken and the indexes trade below the lows, we may see heavy selling in the market going forward.
Historically, it has been noticed based on data that nifty had oscillated between gains and losses during the last four years in May month.
Nifty in May for the last four years :
In 2020 lost 370 points, In 2021 gained 443 points, In 2022 Nifty lost 1075 points, and in 2023 nifty gained 406 points.
The FIIs' long position in Nifty was 45% in April series, now it has
reduced to 39% at the beginning of new series. In January, FIIs had solid 70%
long position in nifty.
There are some important events are to be happened. Remainder of corporate results announcement. The biggest event of Lok Sabha Elections which is on the way.
India vix is rising means volatility in the market is increasing. Crude oil price is also increasing. US Federal Reserve kept interest rate unchanged. These all are triggers to look out for the month of May, 2024.
There is a saying in the stock market, "𝗦𝗲𝗹𝗹 𝗶𝗻 𝗠𝗮𝘆 𝗮𝗻𝗱 𝗴𝗼 𝗮𝘄𝗮𝘆". Is this going to be proved in May?
Investors and traders should decrease their exposure while trading in Nifty and Bank nifty. This is our own analysis of the indexes in the way we are doing our technical analysis in the stock market. Please do your own or take help from advisers for further steps to be taken.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
