Markets to Watch: 15 Key Factors for the May 7 Trading Session
Nifty 50 Sees Bullish Momentum as US-Iran Peace Deal Hopes Boost Market
The Nifty 50 index rallied 1.24 percent on May 6, convincingly breaking above the 50-day EMA and the midline of the Bollinger Bands. This comes after several days of consolidation, with the index reclaiming the 50 percent Fibonacci retracement of the fall from the February high to the April low. The market's improving momentum indicators, such as the RSI and MACD, also suggest a strengthening bullish trend.
Key Levels to Watch
| Index | Key Levels |
|---|---|
| Nifty 50 | 24,365, 24,450, 24,587 (resistance), 24,091, 24,007, 23,870 (support) |
| Bank Nifty | 56,119, 56,471, 57,041 (resistance), 54,979, 54,627, 54,057 (support) |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The Nifty 50 formed a bullish candle with a lower shadow on the daily chart and has broken above a triangle-type pattern, signaling an improving trend. The index is now trading above short- and medium-term moving averages, as well as the midline of the Bollinger Bands, while defending the 20-day EMA throughout the recent consolidation phase.
Options Data
- Nifty Call Options:
- Maximum Call open interest: 25,000 strike (79 lakh contracts)
- Maximum Call writing: 25,000 strike (29.7 lakh contracts)
- Nifty Put Options:
- Maximum Put open interest: 24,000 strike (66.3 lakh contracts)
- Maximum Put writing: 24,200 strike (31.31 lakh contracts)
- Bank Nifty Call Options:
- Maximum Call open interest: 56,000 strike (8.7 lakh contracts)
- Maximum Call writing: 56,400 strike (20,550 contracts)
- Bank Nifty Put Options:
- Maximum Put open interest: 56,000 strike (8.59 lakh contracts)
- Maximum Put writing: 55,000 strike (2.05 lakh contracts)
Market Indicators
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
- Put-Call Ratio: 1.19 (up from 1.08 previous session)
- India VIX: 16.68 (down 6.87 percent from previous session)
- Long Build-up: 106 stocks
- Long Unwinding: 13 stocks
- Short Build-up: 22 stocks
- Short-Covering: 73 stocks
The Nifty's sustained movement above 24,300 could lead to further upside toward 24,600–24,800 in the upcoming sessions, while the immediate crucial support remains at 24,000.
Investor Takeaway
The Nifty 50 may continue to rise if it sustains above 24,300.
More in Market
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