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Nifty :24119

Technical Outlook

Day that was.. The Indian equity benchmark concluded the session on a positive amid election outcome-based volatility. The index settled the day at 24119 up 0.50%. Market Breadth was in favor with advance with an A/D ratio of 2:1. Broader market moved in tandem with benchmark performance and gaining 0.60% and 0.70% respectively. Barring IT and PSU Banks, all major indices closed on a positive note. Realty, Healthcare, and Metals emerged as the top performers

Technical Outlook:

• Index started the week on a positive note and witnessed initial opening gains however, profit booking emerged around its previous week’s high (24,334). The daily price action resulted into bullish candle with wicks on both ends, indicating heightened volatility at elevated levels.

• Index is likely to open gap-down on back of weak global cues as the geopolitical conflict resurfaced, resulting into rise in brent crude prices. Key highlight is that, despite favorable election trends in key states like West Bengal and Assam, the index witnessed a lack of sustained follow-through strength hence the focus is now once again shifted to macro cues.

• Going ahead, A decisive close above the upper band of the current consolidation at 24,500 is required to open the doors for the next leg of the upmove. Till then, we expect a continuation of healthy consolidation within the 23,400-24,500 range with stock-specific activity likely to continue amid Q4 earnings season. This sideways movement would help index to cool off overbought conditions seen post 11% rally off April low of 22181 and aid index to find sustainable base amid global uncertainty.

• Thereby, we view the current retracement as a healthy consolidation rather than a trend reversal. Investors should utilize dips to accumulate high-quality stocks with strong Q4 earnings as strong support is firmly placed at 23,400, which aligns with the 61.8% Fibonacci retracement of the recent rally (22,182–24,601) and the gap area of 23,555–23,154 recorded on 8th April.

• The Nifty 500 vs. Nifty 100 ratio chart has shown significant improvement after establishing a higher base above a multi-year breakout level. This trend suggests that the broader market is poised to outperform the large caps, signaling broadening of the rally

• Despite global volatility, the market breadth has been holding sturdy after showing significant improvement as the current reading of % stocks trading above 50- and 200-days SMA has jumped to 72% and 42% compared to last month reading of 15%, signaling broadening of rally that bodes well for durability of ongoing up move

Key Monitorable:

A. Development on geopolitical conflict

B. Crude Oil Intraday Rational:

• Trend – Lack of follow through strength signifies prolongation of consolidation

• Levels – Sell around 61.8% retracement of yesterday decline

Nifty :24119 Daily Candle Chart May 5, 2026

Nifty Bank : 54878

Technical Outlook

Day that was:

The Bank Nifty Index relatively underperformed the benchmark closing marginally negative amid election outcome-based volatility at 54878 up 0.03%. Nifty PSU Bank relatively underperformed, down 0.3%.

Technical Outlook:.

• Index started the week on a positive note. However, profit booking from 20-day EMA coinciding with falling trendline dragged index lower and settled on a flat note. The daily price action resulted into Doji like candle, indicating elevated volatility.

• Index is likely to witness gap down opening tracking muted global cues as geopolitical conflict resurfaced. Key point to highlight is that, over past eight sessions, index is facing resistance at falling trendline joining highs of 22ndApril (57438) and 29th April (56178) and failed to close above previous session high. This phenomenon of absence of follow through strength indicate near term weakness, resulting into continuation of corrective phase wherein strong support placed around 53700, being 50% retracement of entire April rally (49954-57456).

• Further, to pause the ongoing corrective move, a decisive close above previous session high (55602) would be required which can open the door for a meaningful pullback towards April high placed around 57500

• Nifty PSU Bank relatively underperformed forming higher high higher low with upper shadow sustaining below 20-day EMA indicating near term weakness. Sustainability above last week high will be important for revival in upward momentum.

• Intraday Rational:

• Trend-For past couple of sessions, intraday pullbacks are getting sold into, suggesting near term weakness

• Levels- Sell around 61.8% retracement of yesterday decline

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