Markets to Watch: 15 Key Developments Ahead of Thursday's Opening Bell

Nifty 50 Extends Selling Streak, Falls Six-Tenths of a Percent

The Nifty 50 continued its downward trend, falling six-tenths of a percent on May 8. The index struggled to stay above the 50 percent Fibonacci retracement level and the 50-day EMA, but managed to hold above the 20-day EMA, which has been acting as support for the past two weeks. Market participants are eagerly awaiting further updates on the US-Iran deal, which is expected to influence market sentiment in the coming sessions.

Key Levels to Watch

The Nifty 50 is expected to trade in the 24,000-24,500 range in the upcoming sessions, with a decisive breakout on either side of the range likely to provide a clear direction for the market. Above this range, the 24,600-24,800 zone will be a crucial level to watch, while on the downside, support is placed at 23,800.

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Technical Analysis

The Nifty 50 formed a bearish candle with upper and lower shadows on the daily charts after a gap-down opening, signaling weakness in the market. The index remained above the 20-day EMA as well as the 23.6 percent Fibonacci retracement level, but fell below the 50-day EMA and continued to trade below the long-term moving averages. The RSI, at 52.40, showed a bearish crossover and remained sideways, while the MACD continued to sustain above the signal and zero lines, though the histogram's green bars faded.

Options Data

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The 24,500 strike holds the maximum Call open interest, followed by the 25,000 strike and the 24,200 strike.

The 23,500 strike holds the maximum Put open interest, followed by the 24,000 strike and the 24,200 strike.

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) slipped to 0.93 on May 8, compared to a 1.08 previous session. The increasing PCR indicates a firming up of a bullish sentiment in the market.

India VIX and Volatility

The fear index, India VIX, rebounded moderately by 1.32 percent to 16.84 on Friday after correcting over the previous four consecutive sessions. The volatility index remained below short-term and medium-term moving averages, which is supportive for bulls.

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. No stocks were added to, removed from, or retained in the F&O ban list.

Key Statistics

The Bank Nifty formed a bearish candle with a minor lower shadow on the daily timeframe and slipped below short-term and medium-term moving averages, indicating weakness in the banking index.

Other Key Figures