Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 30

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday following losses in global peers.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 22,660 level, a discount of nearly 70 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity indices extended their losing streak for the fourth consecutive session, with the benchmark Nifty 50 holding above the 22,700 level.

The Sensex declined 667.55 points, or 0.89%, to close at 74,502.90, while the Nifty 50 settled 183.45 points, or 0.8%, lower at 22,704.70.

Nifty 50 formed a bearish candlestick pattern on the daily charts with an upper shadow.

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“On the daily chart, the uptrend has weakened. Wednesday’s negative closing has led to the Nifty closing below the previous swing high of 22,795. Nifty nevertheless continues to hold above the 20 and 50-day SMA. 14-day RSI at 56.57 is falling and has now moved below its 9-day EMA. This indicates that momentum is weakening,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.

He believes further downsides are now likely once the immediate support of 22,685 is broken. Immediate resistance is now at 22,826. Markets are likely to be volatile in the coming sessions as we approach the election result announcement, he added.

Nifty 50 Prediction

The Nifty 50 index declined 183 points to close at 22,704 on May 29 as bears remained in control, leading to a sharp fall.

“During the day, heavy call writing activities were seen at the 23,000 and 22,800 strikes, while put writing activities were visible at the 22,800 and 22,700 strikes. The option data suggests that Nifty might expire around 22,800. On the other hand, a fall below 22,700 might trigger additional selling pressure in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, immediate resistance is placed at 22,800.

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V.L.A. Ambala, Co-founder – Stock Market Today (SMT) noted that Nifty 50 is trading approximately 11% away from the index’s 20-day EMA on the monthly timeframe, indicating a price divergence that gets filled with time.

“However, if this bullish trend continues to prevail the anticipated correction could be smaller. Alternatively, if the index plunges below 22,380, we could witness more selling pressure in the market. I recommend adopting a wait-and-watch strategy to navigate the situation. F&O Strangles, Debt spread, and selling futures with covered calls could also help to make the most of this corrective move,” Ambala said.

While long-term investors may find buying opportunities if the index reaches the support levels, she recommends proceeding with caution. Judging these, in the next trading session, the Nifty Index could find support around 22,570 – 22,450 levels, and face resistance near 22,700 – 22,750 levels, Ambala added.

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Bank Nifty Prediction

The Bank Nifty ended 641 points lower at 48,501 on Wednesday and formed a bearish candlestick pattern on the daily timeframe.

“The Bank Nifty index has demonstrated a clear shift in sentiment by opening below its support level at 49,000 and trading beneath it. It closed near its 21-day EMA at 48,400. If Bank Nifty fails to maintain above the 21-day EMA, further selling pressure may drive it down to 48,000,” De said.

Consequently, he believes 48,400 now serves as the support level for Bank Nifty, with 49,000 acting as the new resistance level.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.