Nifty 50 - Analysis

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NIFTY 02 MAY 2025 - (INTRADAY) - A Hanging Man pattern has formed on the daily chart, suggesting potential profit-booking if the index fails to sustain above current levels.

 


Hanging man emerges on Daily chart of NIFTY 50





📊 Current Market Structure

  • Index Level: Nifty 50 is trading around 24,440, having reached an intraday high of 24,589—the highest in 2025 so far. 
  • Trend: The index is consolidating within a range of 23,800 to 24,450, hovering above its 10-day EMA, indicating a neutral-to-cautious structure. 
  • Candlestick Pattern: A Hanging Man pattern has formed on the daily chart, suggesting potential profit-booking if the index fails to sustain above current levels. 

🔍 Key Technical Indicators

  • Relative Strength Index (RSI): Currently at 65, indicating the market is approaching overbought territory. 
  • Moving Average Convergence Divergence (MACD): Trending upward and remains above the zero line, supporting bullish momentum. 
  • Moving Averages:The index is trading above its 10, 20, 50, 100, and 200-day EMAs, all of which are trending upward, reinforcing the positive trend. 

📈 Support and Resistance Levels

  • Immediate Support: 24,200, with stronger support between 24,000 and 23,800 
  • Immediate Resistance: 24,550, with a broader resistance zone between 24,400 and 25,400 

  • Pivot Points:

    Support Levels: 24,234, 24,188, and 24,112
  • Resistance Levels: 24,800, 24,980, and 25,200 

🧠 Trading Strategy

  • Breakout Scenario: A decisive move above 24,800 could signal the start of a new bullish phase, potentially targeting 25,900 .
  • Breakdown Scenario: If the index falls below 24,200, it may trigger further selling pressure, with potential downside towards 24,000–23,900 .
  • Approach: Given the current consolidation and mixed signals, a stock-specific trading approach is advisable, focusing on sectors showing relative strength.

⚠️ Market Sentiment

The formation of a Hanging Man candlestick pattern and the plateauing RSI suggest caution. While the overall trend remains positive, the market may experience short-term volatility. Traders should monitor key support and resistance levels closely and adjust their strategies accordingly.


I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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