Market Analysis for May 04, 2022

Nifty Chart Analysis

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1. Although we witnessed a gap down on Monday, throughout the day price was inching upwards and trading above the open. The gap eventually got filled and Nifty Futures closed around 17079. The Bulls were in control in the Intraday Timeframe.

   

   Nifty Futures - 5 minutes Chart

2. However, the Bears are still in control in the Daily Timeframe as Nifty Futures closed below the key level of 17230. The higher timeframe is still in the Bears’ control.

   

   Nifty Futures - 1 Day Chart

3. FIIs sold for 1853 Crores in the cash market and DIIs bought for 1951 Crores.

4. FIIs further increased their short positions on the Index. They have maintained their long positions in the stock derivatives segment. Overall, FIIs are bearish on the Index and bullish on certain stocks.

   

   Source : Finvezto Toolkit

5. The Indian Stock market was closed today. However, other Global markets are open and mostly they are in green.

   

   Source : Finvezto Toolkit

6. SGX Nifty is also comfortable above 17000.

7. With respect to the current week expiry, straddles were added at 17000 on Monday. The 17000 straddle is trading at ₹262. Hence, the market participants are expecting the Nifty to trade between 16750 and 17250 during this expiry.

   

   Source: Finvezto Toolkit

Let’s now move on to the price action.

Positional Trading Analysis for this week (May 02 to 06, 2022)

Source: Finvezto Toolkit

• Bullish only if the Nifty Futures closes above 17435 in the Daily Chart. Resistance on the upside being 17658, 17812, 17991. (Marked in Red).

• Bearish if Nifty Futures closes below 17230 in the Daily Chart. Support on the downside being 17040, 16844, 16635 (Marked in Green).

• We will maintain a Neutral view if Nifty Futures trades between 17230 & 17435 (between the Blue levels).

The above analysis is for Positional Trading (1 Day Chart). For Intraday Analysis (5 minutes Chart) of Nifty, Banknifty & Stocks, and other useful tools, please check the Finvezto Toolkit. Toolkit enables independent research and helps you make wise trading & investing decisions.

Disclaimer: The analysis is for educational & informational purposes only. Please consult your financial advisor before taking any trading/investing decisions.