Quote on Pre-market comment for Friday May 8 by Aakash Shah, Technical Analyst, Technical Research Analyst, at Choice Broking
Below the Quote on Pre-market comment for Friday May 8 by Aakash Shah, Technical Analyst, Technical Research Analyst, at Choice Broking
Indian equity markets are expected to open on a cautious negative note, with Gift Nifty trading at 24,314, down by 85 points amid renewed geopolitical concerns following reported Iran–US clashes. Asian markets traded mixed in early trade, while global sentiment remained cautious due to rising Middle East tensions.
In the previous session, The Nifty 50 ended largely flat amid range-bound consolidation after the recent sharp rally. Despite choppy movement near the key resistance zone of 24,500 the broader undertone remains positive as the index continues to hold above its short- and medium-term moving averages.
Technically, Nifty formed a bearish candle with a minor upper shadow on the daily chart, indicating mild profit booking at higher levels. However, the index sustained above the 20-day and 50-day moving averages and also held above the 50% Fibonacci retracement level of the February-to-April decline, indicating underlying strength.
Momentum indicators remain supportive. The RSI stood at 55.33 and stayed above the signal line, while the MACD histogram expanded further into positive territory, reflecting strengthening bullish momentum despite ongoing consolidation.
As long as Nifty holds above the 24,200–24,000 support zone, the broader trend is likely to remain constructive. A sustained move above 24,500 may trigger further upside toward 24,600 and 24,800, while a break below 24,000 could drag the index toward 23,800.
Derivatives data indicates a mildly positive undertone. The Nifty Put-Call Ratio (PCR) eased to 1.08 from 1.19 in the previous session, suggesting some moderation in bullish sentiment while still reflecting supportive put writing activity. India VIX declined for the fourth consecutive session, falling 0.34% to 16.62, indicating easing volatility. However, traders are expected to remain cautious amid geopolitical tensions.
Option chain data suggests strong support at the 24,000 strike due to aggressive put writing, while resistance is placed in the 24,400–24,500 zone where call writing remained active
Bank Nifty traded in a narrow range with moderate gains and formed a Doji-like candle on the daily chart, indicating indecisiveness after the recent upmove. However, the broader structure remains positive as the index sustained its higher high–higher low formation and continued trading above the 10-day and 20-day EMAs.
Momentum indicators for Bank Nifty also improved, with RSI rising to 53.16 and MACD turning bullish. Immediate support is placed around 55,500–54,500, while resistance is seen near 56,800–57,000.
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