Nifty 50, Bank Nifty Face Test of Resilience Amid Range-Bound Market Conditions

Market Outlook: Nifty and Bank Nifty

The Indian stock market is expected to trade within a narrow range in the short term, with key levels to watch for the Nifty 50 and Bank Nifty.

Nifty 50: Key Levels and Strategy

The Nifty 50 needs to reclaim and sustain above 24,250 to move toward the 24,350-24,400 resistance zone. However, immediate support is placed in the 24,100-24,000 range, below which a fall toward 23,800 is possible. Experts recommend buying Nifty Futures on dips around 24,100, with a stop-loss at 23,900, targeting 24,600.

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Nifty 50: Technical Analysis

The Nifty 50 has gained for the second consecutive week, but technically, not much has changed. Prices have continued to gyrate within a narrow range, forming a series of small-bodied candles on the daily chart. The index has formed a higher base around the 23,800 mark, with dips toward this zone consistently witnessing buying interest.

Bank Nifty: Key Levels and Strategy

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The Bank Nifty needs to convincingly surpass 55,800 to move toward 56,300-56,600. However, immediate support is placed in the 55,000-54,500 range. Experts recommend buying Bank Nifty Futures on dips around 54,800, with a stop-loss at 54,000, targeting 57,000.

Nifty 50 and Bank Nifty: Weekly Performance

On May 8, the Nifty 50 slipped 151 points (0.62 percent) to 24,176, while the Bank Nifty fell 737 points (1.31 percent) to 55,311. Market breadth remained weak, with about 1,680 shares declining against 1,274 advancing shares on the National Stock Exchange.

Expert Views

Rajesh Bhosale, Technical Analyst at Angel One, suggests that the Nifty 50 is likely to consolidate within the 24,600-23,800 range, with a breakout on either side determining the next directional move. Meanwhile, Anshul Jain, Head of Research at Lakshmishree Investments, recommends buying Nifty Futures on a breakout above 24,400, targeting 24,603, with a stop-loss below 24,350.

Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, suggests that the Bank Nifty is expected to trade within the 56,500-53,500 range with a mixed-to-cautious bias. Momentum indicators remain neutral, with the weekly RSI flattening, indicating a lack of strong directional momentum in either direction.