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Below the Quote on Pre-market comment for Monday May 11 by Aakash Shah, Technical Analyst, Technical Research Analyst, at Choice Broking

Indian equity markets are expected to open on a cautious negative note, with Gift Nifty trading at 24,050, down by 188 points. Global sentiment remains mixed as markets take cues from a strong rally in US technology stocks and upbeat Non-Farm Payrolls data, which reinforced confidence in the resilience of the US economy. However, uncertainty surrounding developments in the US-Iran deal continues to keep investors cautious.

In the previous session, Nifty 50 extended its decline for another session on May 8, falling around 0.6 percent amid weak and choppy trade. The index failed to sustain above the 50 percent Fibonacci retracement level of the correction from the February high to the April low, as well as the 50-day EMA. However, it continued to hold above the 20-day EMA, which has acted as strong support over the past two weeks.

Technically, Nifty formed a bearish candle with upper and lower shadows on the daily chart after a gap-down opening, indicating weakness amid volatile movement. The index also continued to trade below long-term moving averages, reflecting cautious undertones in the broader structure.

Momentum indicators have started weakening. The RSI stood at 52.40 and witnessed a bearish crossover while remaining largely sideways, indicating fading momentum. Meanwhile, the MACD continued to remain above the signal and zero lines, though the histogram’s green bars narrowed further, signalling weakening bullish momentum.

The index is expected to trade within the broader 23,800–24,500 range in the coming sessions. A decisive breakout above 24,500 could trigger fresh upside momentum toward 24,600–24,800. On the downside, immediate support is placed at 23,800, followed by the crucial support zone near 23,555.

Derivatives data reflects a cautious undertone. The Nifty Put-Call Ratio (PCR) slipped to 0.93 on May 8 from 1.08 in the previous session, indicating reduced put writing activity and some increase in cautious positioning by traders. India VIX rebounded moderately by 1.32 percent to 16.84 after declining for four consecutive sessions.

Option chain data suggests strong support near the 24,000 strike due to continued put writing activity, while immediate resistance is visible around the 24,400–24,500 zone where call writers remain active. This indicates continuation of the broader consolidation structure

Bank Nifty underperformed the benchmark indices and declined more than 1.3 percent with above-average volumes. On the daily chart, the banking index formed a bearish candle with a minor lower shadow and slipped below its short- and medium-term moving averages, indicating emerging weakness in the sector.

Immediate support for Bank Nifty is placed around 53,800–53,500, while resistance is seen near 54,500–55,000. A sustained move above resistance levels will be required to revive bullish momentum in the banking index.

Overall, the market setup indicates a cautious and volatile start to the week amid mixed global cues and geopolitical uncertainty. While Nifty continues to hold above key near-term support levels, weakening momentum indicators and pressure near higher zones suggest that consolidation may continue unless the index decisively breaks out of the 23,800–24,500 range.

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