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Below the Quote on Pre-Market Comment by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian benchmark indices are expected to open on a flat note, as indicated by the GIFT Nifty, which suggests a modest upside of approximately 16 points for the Nifty 50. Market sentiment remains mildly indecisive, especially after the cautious close witnessed in the previous session.

In the last trading session, the Nifty 50 opened strong but slipped below its intraday support at 24,700, forming a bearish candlestick on the daily chart. This reflects an increase in selling interest and growing caution among market participants. However, a sustained move above the 24,700 level could reignite bullish momentum, potentially pushing the index higher toward the 24,850–25,000 range. On the downside, immediate support is visible at 24,500 and 24,350, which could serve as attractive accumulation zones for long positions if tested.

The Bank Nifty experienced notable weakness, declining by 543 points and forming a bearish candle, which suggests sustained selling pressure. A decisive breakdown below the key support at 54,500 may extend the downside toward 54,250 and 54,000. On the other hand, if the index holds above these support levels and exhibits signs of reversal, it could offer fresh buying opportunities, with immediate resistance seen at 55,000 and 55,175. A breakout above this zone could potentially drive the index toward 55,500.

On the institutional activity front, Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs.10,061 crore on May 21, signaling cautiousness ahead of key events. Meanwhile, Domestic Institutional Investors (DIIs) provided some support with net purchases of Rs.6,738 crore.

Given the current environment marked by uncertainty and elevated volatility, traders are advised to adopt a cautious “wait and watch” approach, particularly with leveraged positions. Booking partial profits on rallies and employing tight trailing stop-losses is recommended. Fresh long positions can be considered only if Nifty sustains above the 24,700 mark. Overall, while sentiment remains cautiously bullish, traders should keep a close eye on key technical levels and evolving global cues.

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