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Business News/ Markets / Stock Markets/  Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 7
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Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 7

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,585 level, a premium of nearly 35 points from the Nifty futures’ previous close.

Nifty 50 formed a small negative candle on the daily chart beside the long bear candle of previous session.Premium
Nifty 50 formed a small negative candle on the daily chart beside the long bear candle of previous session.

The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Tuesday tracking gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,585 level, a premium of nearly 35 points from the Nifty futures’ previous close.

On Monday, the domestic equity benchmark indices ended volatile session mixed.

The Sensex gained 17.39 points to close at 73,895.54, while the Nifty 50 settled 33.15 points, or 0.15%, lower at 22,442.70.

Nifty 50 formed a small negative candle on the daily chart beside the long bear candle of previous session.

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, Japan Services PMI to oil prices

“This chart pattern indicates sell on rise opportunity amidst range bound action. Nifty is currently placed at the support of 22,400 - 22,300 levels and is not sustaining during its intraday upside bounces. The larger degree higher tops and bottoms is into play. Having declined sharply from the new higher top of 22,794 levels on Friday, Nifty showing weakness down to a formation of new higher bottom of the pattern. Still higher bottom reversal is not confirmed," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty remains negative. 

As long as the support of 22,300 holds, there is a possibility of an upside bounce in the market. A move below the support could open more weakness in the short term, Shetti added.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Coming to the Nifty Open Interest (OI) Data, on the call side, the highest OI was observed at 22,500 followed by 22,700 strike prices while on the put side, the highest OI was at 22,500 strike price, noted Deven Mehata, Research Analyst at Choice Broking.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 7

Nifty 50 Prediction

The Nifty 50 index shifted into a narrow range movement with weak bias on May 6 and closed the day lower by 33 points.

“Nifty mostly traded sideways throughout the day, fluctuating between 22,400 and 22,550. Although the index ended above the short-term moving average, the 21-EMA (Exponential Moving Average), on the daily chart, the sentiment appears somewhat bearish due to consecutive red candles, suggesting a prevalence of sellers over buyers. In the near term, sentiment could stay subdued as long as it stays below 22,500," said Rupak De, Senior Technical Analyst, LKP Securities.

On the downside, he believes there is a possibility of the index sliding towards 22,300.

Also Read: Asian Stocks Climb After US Gain on Rates Optimism: Markets Wrap

Bank Nifty Prediction

The Bank Nifty index closed 28 points lower at 48,895 amid a rangebound trade on Monday.

“The Bank Nifty index underwent a sideways trading session, with bulls successfully defending the support zone around 49,000 - 48,900. Immediate resistance is noted at 49,300, and a decisive breakthrough could trigger short-covering moves towards 49,500," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Conversely, he believes a significant breach of the 48,900 mark may induce further selling pressure towards 48,400, where the 20-DMA is positioned.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 May 2024, 07:21 AM IST
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