F&O Manual | Nifty begins the May series quietly, but there should be little downside

F&O Manual | Nifty begins the May series quietly, but there should be little downside

Nifty

In the next sessions, analysts predict that the bullish bias will push the Nifty towards new highs, and they advise investors to purchase the dip.

Benchmarks for equity With worries mounting about a potential delay in rate reduction owing to slower-than-expected US first-quarter GDP growth and higher-than-expected inflation, the Nifty 50 and the Sensex began the May derivatives series on a quiet tone.

The Nifty was down 63.80 points, or 0.28 percent, at 22,506.50, while the Sensex was down 242.86 points, or 0.33 percent, at 74,096.58 at 1:30 pm.

Ten-year US bond rates spiked due to slower GDP growth, sticky inflation, and high PCE core expenditure, which further soured the mood.

Still, analysts are optimistic about the endurance of the home market. They said that India's solid macroeconomic footing and strong economic position would protect local stocks from any significant effects.

Domestic markets were only reacting hastily to the most recent US news, which was also indicative of this bullishness. Analysts anticipate that the mood will be upbeat and that the Nifty 50 will only witness modest declines from its present levels.

Angel One's Head of Research-Technical & Derivatives, Sameet Chavan, predicts that the bullish bias will continue and that prices will probably revisit their prior highs in the next sessions. He advised investors to have an optimistic attitude and take advantage of chances to purchase at lower prices.

According to Chavan, Nifty's immediate support is between 22,500 and 22,450, with 22,300 serving as a crucial support. The benchmark index is going to go closer to the previous high of 22,775, with immediate resistance around 22,700.

Bank Nifty

On the daily chart, Bank Nifty also produced a large bullish candle that improved the bias by breaking beyond the 48,300 zone. Vice President of Technical Research at Prabhudas Lilladher Vaishali Parekh anticipates that the sectoral index would rise further in the near future, reaching objectives of 49,000 and 49,400.

Parekh predicted a trading range of 48,000–49,000 for the day.