Market Outlook for 08 May 2024

Nifty continued its corrective move as INDIA VIX rallied further leading to nervousness amongst market participants. The index breached the support of 22300 during the day, but managed to close just above it with a loss of over half a percent.

Nifty Today:

In last three trading sessions, the rise in INDIA VIX and negative market breadth has led to a correction of over 500 points in the Nifty index. The RSI oscillator on the daily chart had given negative crossover on Monday hinting at weak momentum. The index is now trading around the crucial support of 22300, which is the 40 DEMA. If it sustains below this, then we can see a down move towards 22000-21900 zone in the near term. However, certain sectors such as FMCG, IT which are seen as defensive in nature witnessed some buying interest. So amidst these volatile moves, there could be stock specific opportunities which could buck the trend. Traders are advised to follow a stock specific approach and look for opportunities in such outperforming sectors. On the higher side, the immediate resistance for Nifty is seen around 22450-22500 which needs to be surpassed for a change in the short term bearish sentiment.

                                           INDIA VIX rises sharply, market breadth turns negative

Nifty, SENSEX Levels, Bank Nifty Levels and  FINNIFTY Levels: