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Below the Quote on Pre-market comment by Deven Mehata, Research Analyst, Choice Broking Ltd

The Indian stock market is anticipated to commence positively today, with both the benchmark Sensex and Nifty indices set to open gap-up. The GIFT Nifty's upward trajectory indicates a promising start for the broader index, hinting at a potential gain of 100 points.

However, recent market movements reveal a decline in the Nifty 50, dropping 172 points to 22,476 after hitting a record high intraday. Bearish signals are apparent, such as a bearish divergence on the daily timeframe with the RSI failing to surpass its previous swing high despite index surges. Additionally, there's a formation of a Bearish Engulfing candlestick pattern on the daily charts, alongside Doji and Double Top patterns on the weekly charts.

Technical analysis of the Nifty daily chart provides insights into critical support and resistance levels. Breaching the 22,700 mark may signal an upward movement towards 22,900 and 23,000, with immediate support at 22,300. Similarly, for the Bank Nifty, surpassing the 49,400 level could lead to further gains, potentially reaching 50,000 and 50,500, while 48,500 serves as immediate support.

In terms of investor activity, provisional data from the NSE reveals foreign institutional investors (FIIs) net sold Rs 2,391.98 crore shares, contrasting with domestic institutional investors (DIIs) who injected Rs 690.52 crore on May 3.

Considering these dynamics, traders and investors are advised to capitalize on buying opportunities during Nifty dips while implementing effective stop-loss strategies below the mentioned support levels. This cautious approach aims to mitigate risks and capitalize on potential gains in today's trading session.

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