Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 6

The trends connected Gift Nifty besides bespeak a gap-up commencement for the Indian benchmark index. The Gift Nifty was trading astir 22,685 level, a premium of astir 110 points from the Nifty futures’ erstwhile close.

On Friday, the benchmark equity indices closed astir a percent little dragged by nett booking crossed sectors.

The Sensex dropped 732.96 points, oregon 0.98%, to adjacent astatine 73,878.15, portion the Nifty 50 settled 172.35 points, oregon 0.76%, little astatine 22,475.85.

Nifty 50 formed a agelong carnivore candle connected the regular chart, which has engulfed the tiny scope candle of the past fewer sessions. 

Also Read: Indian banal market: 8 cardinal things that changed for marketplace implicit play - Gift Nifty, US jobs information to Nasdaq rally

“Technically, this signifier could beryllium considered arsenic a bearish engulfing pattern, and this suggests immoderate much weakness ahead. Nifty connected the play illustration formed a gravestone doji benignant candle signifier astatine the caller highs. Normally specified a doji signifier aft a tenable upside bounce alerts reversal connected the downside. Hence, bulls request to beryllium cautious astatine the highs," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term inclination of Nifty seems to person reversed down. 

“The higher apical of the bullish signifier is apt to person completed connected Friday astatine the plaything precocious of 22,794 levels and the short-term downward correction is expected successful the coming sessions. Immediate absorption is astatine 22,600 and the adjacent downside levels to beryllium watched are astir 22,120 levels," Shetti added.

Nifty 50 Prediction

The Nifty 50 scale witnessed crisp diminution from the all-time highs connected May 3 and closed the time little by 172 points.

“The Nifty scale is showing signs of near-term bearishness arsenic it forms a treble apical signifier connected the regular chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise attack successful the market. Confirmation of the treble apical signifier would necessitate follow-up selling successful the upcoming week. Immediate absorption is noted astatine the 22,600 - 22,700 zone, wherever assertive telephone penning has been observed successful the options market," said Kunal Shah, Senior Technical & Derivative Analyst astatine LKP Securities.

On the downside, Shah believes the scale has contiguous enactment astatine 22,300, and a breach beneath this level could accelerate the downside momentum.

Also Read: Buy oregon sell: Vaishali Parekh recommends 3 stocks to bargain contiguous — May 6

Bank Nifty Prediction

The Bank Nifty scale declined 308 points to adjacent astatine 48,924 connected Friday, forming a bearish candlestick signifier connected the regular charts.

“The Bank Nifty scale faced selling unit from higher levels but maintained its uptrend, closing adjacent the contiguous enactment of 49,000. Immediate absorption is astatine 49,200, and a interruption supra could trigger short-covering moves towards 49,500 levels," Shah said.

Conversely, contiguous enactment lies astatine 48,800 - 48,700, and a breach mightiness pb to further downside towards the 48,400 mark, wherever the 20 DMA is situated, helium added.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 06 May 2024, 07:18 AM IST