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After a swift recovery of 1,200 points in just nine sessions from its May 13 low of 21,821, the Nifty seems to be on a bullish trajectory. Analysts suggest that the market sentiment remains positive, thanks to an easing in foreign selling and robust domestic macro data.
Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd., highlighted that the market is expected to witness a gradual upswing with some volatility as both the election and earning season approaches towards the end. Ruchit Jain, lead research analyst at 5paisa.com, emphasized that traders should maintain a positive bias and capitalize on buying opportunities on any dips.
The Bank Nifty is displaying strength after breaking the short-term resistance of 48,260 levels, suggesting a potential uptrend towards 49,500 as long as it holds above 48,000 levels. In addition, the GIFT Nifty and Nifty May futures are showing promising signs in the market.
While the Indian benchmark indices faced a slight setback on Friday, prominent companies like Indian Oil Corp., TVS Motor Co., and NTPC announced significant developments. For instance, NTPC reported robust financials for Q4 FY24 with positive growth across various parameters, indicating a resilient performance.
On the global front, the Asia-Pacific markets saw an uptick in early trade, tracking Wall Street’s positive momentum. The Nikkei 225 and S&P ASX 200 showed gains, hinting at a recovery in investor risk appetite. Moreover, University of Michigan’s data revealed positive consumer sentiment as inflation expectations fell for May.
Overall, the market outlook appears optimistic, with key support and resistance levels suggesting a potential bullish momentum. Traders are closely watching the put and call options data, delivery percentages of key stocks, and bulk deals for strategic trading decisions.
As market participants gear up for upcoming results and developments, the Nifty Put-Call ratio and FII/DII data provide valuable insights into market sentiment and fund flows. With expert opinions and analysis, investors can navigate through the dynamic landscape of the Indian markets effectively, aiming for profitable trades and strategic investment decisions.
