Market Outlook for 10 May 2024

Our markets witnessed selling pressure right from the opening on Thursday and it corrected throughout the day with no significant pullback move. The index breached the 22000 mark and ended below it with a loss of one and a half percent.

Nifty Today:

It was a day of capitulation as all round selling was seen in the markets on Thursday. The market breadth was extremely weak as all the sectoral indices (except Auto) ended in the red. The INDIA VIX continued its upmove which has been leading to nervousness amongst market participants. The Nifty index formed a ‘Double Top’ around 22800 and is now trading around crucial support of 21900-21770. The hourly readings are in the oversold zone on Nifty and Bank Nifty, and thus it needs to be seen if we get any pullback move from this range. However, until we see signs of strength, it's better not to pre-empt any reversal as sometimes markets just show a small pullback to relieve the lower time frame of oversold set ups and then resume the down move. FIIs continue to sell in the cash and the futures segment and their recent selling in both the segments have led to this sharp correction. Till INDIA VIX cools-off, we expect this volatility to continue and hence, it is better to stay light on positions for a while. On the higher side, 22200-22300 will now be seen as the immediate resistance zone on pullback move.

                                           INDIA VIX rises sharply, market breadth turns negative

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