Quote on Pre-Market Comment by Hardik Matalia, Research Analyst, Choice Broking Ltd
Below the Quote on Pre-Market Comment by Hardik Matalia, Research Analyst, Choice Broking Ltd
Indian benchmark indices are expected to open on a positive note, supported by cues from the GIFT Nifty, which indicates a potential rise of approximately 460 points for the Nifty 50. Following a strong close in the previous session, market sentiment remains mildly optimistic. However, geopolitical tensions and concerns over global tariffs may restrict sharp upward movements in early trade.
In the previous session, the Nifty opened on a bearish note, found firm support near the 23,950 level, and traded sideways before recovering marginally to close with a gain of just 50 points. The formation of an inverted hammer on the daily chart signals a possible trend reversal to the downside, although confirmation is still awaited. Key support is now placed at 23,950, and a breakdown below this level could trigger further downside toward the 23,850–23,700 zone. On the upside, immediate resistance is seen at 24,350 and 24,500. A breakout above these levels may pave the way for a rally toward 24,700.
Similarly, the Bank Nifty witnessed a sharp decline of 770 points and formed a strong bearish gravestone doji candle, indicating growing selling pressure. A sustained move below the critical support level of 53,500 could lead to further weakness, with immediate support placed at 53,360 and 53,180. On the flip side, if the index manages to hold these levels and reverse, it may offer fresh buying opportunities. On the higher side, resistance is seen at 54,000 and 54,170; a decisive close above this range could initiate a rally toward the 55,000 mark.
On the institutional front, Foreign Institutional Investors (FIIs), after being net buyers for sixteen consecutive sessions, turned net sellers on May 9, offloading equities worth Rs.3,798 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, investing Rs.7,277 crore on the same day.
Considering the current market uncertainty, traders are advised to adopt a cautious “wait and watch” approach, especially in high-leverage positions. Booking partial profits on rallies and maintaining tight trailing stop-losses is recommended. If the Nifty sustains above the 24,250 level, fresh long positions can be considered gradually. Overall, the sentiment remains cautiously bullish, with close attention needed on key breakout levels and global news flow.
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