NIFTY 6 MAY 2025 : As long as it is below 24600, a pullback towards 24200 likely. Major support 24050 (200 DMA)
The Nifty 50 index gained 114.45 points (+0.47%) to close at 24,461.15 on May 5, 2025. Strong results in the IT, energy, automotive, and FMCG industries were the main drivers of this upward advance, whilst banking stocks served as a drag on the index.
The current IndiaVIx is 18.33. Even while it has tremendous momentum on the higher side with buyers at every dip, this will not reassure bulls either.In my opinion, this market is also unsuitable for shorting. I can only designate those as pullbacks as long as the Nifty is over 23800. Before fall, we still need a couple excellent confirmations for top formation. Right now, I can't see any.
Technical Indicators
According to Investing.com, the technical outlook for the Nifty 50 is currently bullish:
- MACD (12,26): 46.89 – Buy
- RSI (14): 57.28 – Buy
- Stochastic (9,6): 99.29 – Overbought
- ADX (14): 20.59 – Buy
- Williams %R: -1.03 – Overbought
- CCI (14): 54.58 – Buy
- ATR (14): 120.09 – High Volatility
- Ultimate Oscillator: 55.10 – Buy
The overall summary indicates a "Strong Buy" sentiment, with 7 indicators signalling a buy, 2 neutral, and none suggesting a sell.
Support & Resistance Levels
Market analysts have identified key levels for the Nifty 50:
- Immediate Resistance: 24,590
- Next Resistance Zone: 24,800–24,850
- Support Range: 23,950–24,100
- 200-Day Simple Moving Average (SMA): Approximately 24,050
- A sustained move above 24,590 could propel the index toward the 24,800–24,850 range.
Sector Highlights
- Top Gainers: Adani Enterprises (+7.03%), Adani Ports, Trent, Shriram Finance, and Mahindra & Mahindra.
- Top Losers: Kotak Mahindra Bank (-4.59%), ONGC, Dr. Reddy's Laboratories, JSW Steel, and State Bank of India.
- Sector Performance: All sectoral indices ended in the green except for the banking sector. Notably, the auto sector led with a 1.85% gain.
Market Sentiment
The recent rally in the Nifty 50 is attributed to easing global trade tensions, steady foreign investments, and declining crude oil prices. Foreign portfolio investors have extended their buying streak for the 12th consecutive session, marking the longest such streak in two years.
Outlook
The Nifty 50's current technical indicators suggest a bullish trend. However, the overbought conditions in some oscillators, such as the Stochastic and Williams %R, indicate the potential for short-term consolidation or minor pullbacks. Investors should monitor key support and resistance levels and stay updated on sectoral performances to make informed decisions.
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