Market Outlook for 09 May 2024

Nifty traded within a range in Wednesday’s session and ended the day on the flat note. The market breadth was positive as advances outnumbered the declines after weak momentum in last couple of sessions.

Nifty Today:

In last few sessions, Nifty has corrected from the previous high resistance of 22800 owing to nervousness amongst market participants as the volatility has increased ahead of the mega event. The RSI on the daily charts is hinting at negative short term momentum. However, due to the recent correction the oscillator on the lower time frame chart is oversold, and thus there could be a possible intraday pullback move. The index had formed a bearish pattern ‘Head and Shoulders’ on the hourly chart in last few sessions and prices had given a breakdown below the neckline of the pattern. Hence, a close above 22350 is required to negate this pattern which could then lead to an upmove. Above this resistance, one can expect a pullback towards 22450-22500 zone, while the lower side 22200 is the immediate support followed by 22000-21900 zone. The market breadth turned positive in Wednesday’s session which indicates stock specific momentum and till the elections outcome, we might see markets moving on both sides of the trade.

Hence, it’s better to take a stock specific approach for the time being and avoid high leveraged positions to manage in such volatile times.

                                           INDIA VIX rises sharply, market breadth turns negative

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