Market Analysis for May 13, 2022

Post Market Report & Nifty Chart Analysis

1. India’s Retail Inflation data was released today. Retail Inflation in April increased by 7.79% Year on Year (YoY), the highest in the last 8 years fueled by high fuel and edible oil costs.

2. Now it is understandable why the RBI had to intervene and hike rates last week in an off-cycle. Nifty has fallen around 1300 points since then.

3. Earlier this week, passenger vehicle sales data was released and that was disappointing too. It dropped by 4% MoM in April.

4. India’s GDP growth forecast was cut by 30 basis points by Morgan Stanley owing to Inflation and a weak global environment.

5. The adage - “Sell in May and Go Away” seems to hold good. By the way, tomorrow is Friday the 13th in the Month of May. ‘May’hem ahead?

6. IndiaVIX shot up 6.5% and is now at 24.27.

7. Reliance and HDFC Bank, the 2 index heavyweights alone took away 70 points from Nifty.

   

8. All sectors ended in the red. Banks were showing some strength over the last few days. But today the Banknifty tanked 3.35%.

9. FIIs continue their selling spree. Sold another ₹5255 Crores today in the cash market. 2 Lac Crore + sold by FIIs so far in 2022.

10. FIIs have majorly held short positions on the Index while they have been selling in the cash market. Yesterday they were holding huge short positions in Index Futures. Today’s data has not been released yet.

11. All Global markets are in red.

Let’s now move on to the charts & price action.

Positional Trading Analysis for this week (May 09 to 13, 2022)

Now, that Nifty Futures has fallen significantly over the last few days, we have updated the positional levels.

• Bullish only if the Nifty Futures closes above 15930 in the Daily Chart. Resistance on the upside being 16034, 16159, 16234. (Marked in Red).

• Bearish as long as Nifty Futures closes below 15711 in the Daily Chart. Support on the downside being 15516, 15415, 15266. (Marked in Green).

• We will maintain a Neutral view if Nifty Futures trades between 15711 & 15930 (between the Blue levels).

The above analysis is for Positional Trading (1 Day Chart) and for this week only. For Intraday Analysis (5 minutes Chart) of Nifty, Banknifty & Stocks, and other useful tools, please check the Finvezto Toolkit.

Please read this article to know more about Key levels.

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