Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 8
Expert view: Indian stock market inherently strong to sustain gains; look beyond immediate triggers The Sensex concluded the trading day with a decline of 384 points, or 0.52 percent, settling at 73,511.85. Similarly, the Nifty 50 ended 140 points lower, or 0.62 percent, at 22,302.50, with 34 stocks recording losses. This marks the third consecutive session of setbacks for the Nifty 50 index.
"A long negative candle pattern was formed on the daily chart with a minor lower shadow. This market action indicates an ongoing downward correction in the market. We observe overlapping negative candles on the downside in the last couple of sessions as per the daily chart which signals the absence of sharp selling momentum in the market.
The lower tops and bottoms on the daily chart are intact and the present weakness could be in line with the new higher bottom formation of the pattern. The higher bottom reversal needs to be confirmed with an upside bounce from the lows. Immediate resistance is at 22,400 levels and the next lower levels are to be watched around 22,100 - 22,000," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Also read: Volatility index VIX hits 52-week high today; Where's it headed in May amid elections? Coming to the OI Data, on the call side, the highest OI observed at 22,500 followed by 22,600 strike prices while on the put side, the highest OI is at 22,000 strike prices, said Deven Mehata, Research Analyst at Choice Broking. Nifty50 closed 140 points lower on Tuesday's trading session at 22,302.50 with 34 stocks in the red. “Technically, the trend has weakened as the index fell below the 21-EMA (Exponential Moving Average).
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