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 poised to open on a positive note, supported by cues from the GIFT Nifty, which indicates a potential gain of approximately 98 points for the Nifty 50. However, market sentiment remains mildly indecisive following a lackluster close in the previous session.
From a technical perspective, the Nifty formed a bearish candle on the daily chart while trading within an inside bar pattern, closing just below the crucial 25,000 level. The index moved sideways throughout the session, fluctuating within a narrow intraday range of 24,900 to 25,100 — a sign of market indecision. Immediate support is seen at 24,900–24,800, while resistance levels are placed at 25,100 and 25,235. A decisive breakout above 25,235 may open the path for an upside move toward 25,500–25,743. Given the global uncertainties, traders are advised to approach the market cautiously, maintain strict risk management, and avoid large overnight positions.
The Bank Nifty also exhibited muted action, gaining only 65 points and delivering mixed signals. A sustained move above the key resistance level of 55,800 could pave the way for further gains. Immediate support is placed at 55,000 and 54,720, while resistance lies at 55,800 and 56,000. A decisive close above this resistance range could trigger a rally toward the 56,500 level.
On the institutional front, both foreign and domestic investors turned cautious, marking the first simultaneous sell-off in over a month. According to provisional data from the NSE, Foreign Institutional Investors (FIIs) sold Indian equities worth Rs.526 crore on May 19, while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs.238 crore.
Given the current landscape of uncertainty and heightened volatility, traders are encouraged to adopt a prudent “wait and watch” approach, particularly when handling leveraged positions. Booking partial profits during rallies and employing tight trailing stop-losses is recommended for effective risk control. Fresh long positions may be considered gradually if the Nifty manages to sustain above the 25,235 mark. Overall, sentiment remains cautiously bullish, with a strong emphasis on monitoring key breakout levels and global developments.
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