Indian stock markets are set to make a good opening on Monday, May 5, as worldwide cues are favorable and Gift Nifty trends indicate gap-up opening. Gift Nifty was in the range of 24,515, showing a possible increase of 115 points from the previous close of Nifty futures.
On Friday, the benchmark indices settled with slight gains. The Sensex climbed 259.75 points (0.32%) to close at 80,501.99, and the Nifty 50 went up by 12.50 points (0.05%) to close at 24,346.70, holding above the key 24,300 mark.
Nifty 50: Range-Bound but Bullish Bias
Options Data & Technical Outlook
Nifty's options data depicts a neutral-to-defensive picture, with the highest open interest of 79.09 lakh contracts at the 24,500 strike—marking it as a near-term resistance point. On the bearish side, the 69.44 lakh contracts in the 24,000 put strike serve as an important support level. The Put-Call Ratio (PCR) has fallen to 0.68, indicating increasing defensive tactics.
"24,400–24,500 range offers strong resistance with a mix of bullish and bearish positions suggesting range-bound trade," opined Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities.
Price Action & Prediction
Nifty 50 is now testing a breakout level between 24,500 and 24,600. Even with attempts to rise further, Friday's long upper shadow candle indicates reluctance.
"A break above 24,600 decisively could take the index to 24,800–25,000. Downside could take it back to 24,000–23,800," explained Nagaraj Shetti, Senior Analyst at HDFC Securities.
Puneet Singhania from Master Trust Group further stated that Nifty is above its 21-day, 55-day, and 200-day EMAs, indicating a bullish setup. The RSI remaining above its 14-day SMA indicates continued strength, with supports at 24,000 and 23,700, and resistances at 24,600–25,000.
A 'buy-on-dips' strategy is still positive in the presence of volatility," Singhania recommended.
Asit C. Mehta's Hrishikesh Yedve also pointed out that although indecision is represented by a spinning top candle, strong underlying momentum is shown by the weekly green candle. The resistance is at 24,590, and a sustained rally above this may take the index to 24,800–24,850.
VLA Ambala, Stock Market Today's Co-Founder, sees intraday support at 24,100–23,950 and resistance around 24,650–24,810.
Bank Nifty: Consolidation to Persist
Index Movement & Outlook
The Bank Nifty closed marginally higher by 28.20 points at 55,115.35 on Friday, registering a doji candle, an indication of indecision. There is a consolidation in the range of 54,000–56,000, and overbought levels are getting absorbed.
"Only a breakout above 56,098 will provide potential to 56,800. Otherwise, the range holds," Bajaj Broking Research added.
Key Levels to Watch
- Resistance: 56,000–56,100
- Support: 54,450 immediate, followed by 54,000 and 53,500
- Indicators: weekly shooting star formation and Doji point to resistance at higher levels
"A move below 54,450 would initiate selling, whereas staying above would sustain the range-bound configuration," said Hrishikesh Yedve.
Puneet Singhania referred to persistent bullish strength with leaders such as HDFC Bank and ICICI Bank. He mentioned a long-term trendline breakout, as well as impressive support from the 21- and 55-day EMAs.
"If 56,100 is broken, new all-time highs could be in sight. Below 54,100, look for a fall to 53,400," he added.
Market Strategy on May 5
With global cues remaining positive and technical charts reflecting mixed but bullish indications, investors might follow a buy-on-dips approach while being cautious about resistance levels.
Important Nifty 50 Levels:
- Support: 24,000 / 23,800
- Resistance: 24,600 / 25,000
Important Bank Nifty Levels:
- Support: 54,450 / 54,000
- Resistance: 56,000 / 56,800
Disclaimer: This is an informational blog only. Views expressed are those of individual analysts and not Mint or this website. Investors are requested to seek advice from certified financial advisors before making any investment.
