Nifty continues to trade under pressure. The index has begun the week on a weak note. It is currently trading at 21,848.75, down 0.94 per cent. The advances/declines ratio is at 9:41. This is very bearish. It indicates more fall could be on the cards during the day.
Nifty 50 outlook
There is support in the 21,850-21,800 region. If that holds, we can get a bounce back move towards 21,900-21,930 during the day. But the broader trend will remain down. Nifty may now need a decisive rise above 22,000 to ease the downside pressure. As long as the Nifty stays below 22,000, the index will remain vulnerable to break 21,800 and fall towards 21,500 and lower this week.
Nifty and Bank Nifty Prediction for the week 13 May’24 to 17 May’24 by BL GURU
Global indices
In Asia, barring the Hang Seng (19,052, up 0.47 per cent), other major indices are in red. Nikkei 225 (38,076) and Kospi (2,714) are down 0.4 and 0.5 per cent respectively. Shanghai Composite (3,151) is down marginally by 0.1 per cent.
In the US, the Dow Jones Industrial Average (39,512.84) had closed the week on a strong note on Friday. It looks bullish to see 39,900-40,000 this week. Thereafter there is a possibility of a reversal.
Nifty 50 Futures
The Nifty 50 May Futures (21,950) is down 0.86 per cent. The outlook is bearish. The contract can fall to 21,800. But before this fall happens, there are chances to get a short-lived bounce to 22,000 or even 22,100. However, a rise beyond 22,100 is not possible.
Trade Strategy
Since there are chances for a bounce, traders can consider a positional trade instead of an intraday one. Go short now at 21,950. Accumulate on a rise to 22,040. Keep the stop-loss at 22,120. Trail the stop-loss down to 21,910 when the contract falls to 21,880. Move the stop-loss further down to 21,860 when the contract touches 21,830. Exit the shorts at 21,810.
Supports: 21,800, 21,770
Resistances: 22,000, 22,100