Indian equity markets are standing at a critical technical crossroads, with the Nifty hovering around 24,500 and facing strong resistance. According to The Economic Times, analysts warn of a potential correction if the index fails to breach 24,750 soon. Rupak De, Senior Technical Analyst at LKP Securities, notes that the index's inability to move past the 24,750 mark over the next fortnight could trigger a meaningful correction. The Nifty has managed to secure two consecutive weeks of gains, but is currently locked in a "congestion zone" around 24,500, struggling to overcome heavy resistance at the 20-week EMA and key Fibonacci retracement levels.
The domestic benchmark indices opened lower on Friday, May 8, amid rising crude oil prices and renewed tensions between the US and Iran. According to reports from LiveMint, as of 10:21 IST, the Nifty 50 declined 0.47% to 24,213.40, while the Sensex fell 0.51% to 77,448.45. Selling pressure was broad-based, with 12 of the 16 major sectoral indices trading in the red. However, broader markets remained relatively resilient, with the midcap and smallcap indices gaining 0.1% and 0.2% respectively.
According to LiveMint reports, the Nifty 50 is in an uptrend on the daily chart, forming a series of higher tops and bottoms. The index is currently well above the 20- and 50-day SMAs, which reconfirms bullish sentiments. Nifty 50 is facing short-term resistance around 24,500-24,600 levels, and any decisive close above this zone may trigger further upside towards 24,800-25,000 levels. The crucial support zone is placed around 24000-23800 levels, with the daily and weekly strength indicator RSI in positive territory, indicating rising strength. However, The Economic Times reports that the index has slipped back below the short-term 50 EMA, suggesting that the bullish momentum seen in April is gradually fading.
The Bank Nifty's momentum is fading after two weeks of losses, with the latest swing high significantly lower than the previous peak near the all-time high. According to The Economic Times, the index has slipped back below the short-term 50 EMA, with resistance placed at 57,500 and supports at 54,000 and 52,800. This weakness in banking stocks contrasts with broader market resilience, as 12 of the 16 major sectoral indices traded in the red during Friday's opening session. Despite the overall market weakness, some stocks like CG Power and M&M are showing resilience amid the broader uncertainty.
Rajesh Palviya of Axis Securities has recommended three stocks for buying on May 8. NBCC (India) Ltd is recommended at ₹97 with an expected upside of 103-106 and downside support at 95-91 levels. Lupin Ltd is suggested at ₹2,462 with an expected upside of 2550-2700 and downside support at 2430-2400 levels. RBL Bank Ltd is recommended at ₹350 with an expected upside of 360-385 and downside support at 335-328 levels. The Economic Times provides additional trading ideas, including BUY CG Power at ₹873 with target ₹950 and BUY M&M at ₹3322 with target ₹3710, while suggesting Sell Bank of Baroda at ₹264.50 with a target of ₹254.
