Nifty 50, Sensex Outlook: Indian Stock Market Trading Expectations for May 11
Indian Stock Market Benchmark Indices Expected to Open Lower on Monday
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Monday, tracking mixed cues from global markets. The trends on Gift Nifty also indicate a negative start for the Indian benchmark index, with the Gift Nifty trading around 24,055, a discount of nearly 179 points from the Nifty futures' previous close.
Market Performance on Friday
On Friday, the Indian stock market extended losses for the second consecutive session and ended lower, with the Nifty 50 closing below 24,200. The Sensex slipped 516.33 points, or 0.66%, to close at 77,328.19, while the Nifty 50 settled 150.50 points, or 0.62%, lower at 24,176.15.
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Sensex Prediction
Sensex experienced range-bound activity last week, finding support near 76,500, while on the upside, profit booking was seen near the 78,000 resistance mark. According to Amol Athawale, VP Technical Research at Kotak Securities, 76,500 would act as a crucial support zone for traders, and a successful breakout above 78,000 could push Sensex up to 78,300 - 78,900.
| Predicted Support and Resistance Levels for Sensex | Level | Potential Impact |
|---|---|---|
| Support Zone | 75,900 - 75,200 | Potential retest of 75,200 |
| Resistance Zone | 78,000 - 78,300 | Potential breakout to 78,300 - 78,900 |
Nifty 50 Prediction
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Nifty 50 formed an evening star formation on the daily chart, signalling potential near-term exhaustion after the recent advance. According to Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd, the broader structure continues to remain sideways to positive, and a gradual recovery towards 24,300 – 24,500 levels is likely in the near term.
| Predicted Support and Resistance Levels for Nifty 50 | Level | Potential Impact |
|---|---|---|
| Support Zone | 24,000 | Potential retest of 23,800 |
| Resistance Zone | 24,500 - 24,600 | Potential breakout above 24,600 |
Bank Nifty Prediction
Bank Nifty index ended 736.85 points, or 1.31%, lower at 55,310.55 on Friday, forming a sizeable bearish candle on the daily chart and slipping below its 20-day EMA, indicating short-term weakness. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the immediate support for Bank Nifty is placed in the 54,900 - 54,800 zone.
| Predicted Support and Resistance Levels for Bank Nifty | Level | Potential Impact |
|---|---|---|
| Support Zone | 54,900 - 54,800 | Potential retest of 54,500 |
| Resistance Zone | 55,800 - 55,900 | Potential breakout above 55,900 |
Investor Takeaway
Expect a negative start for the Indian benchmark index.
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