Nifty 50 Technical View: Immediate Support at 23,800
The Nifty 50 showed a decent recovery after a gap-down opening and testing the 23,800 support level, closing off the day’s low with a 0.7 percent loss on April 30, the final day of the month. Technically, the index managed to close slightly above the 20-day EMA on a closing basis but remained below the 50-day EMA (around 24,200), which is the immediate crucial resistance, while weakening momentum indicators are denting confidence among market participants.
Hence, if the index fails to defend 23,800—an immediate crucial support—next week, further selling pressure may drag it towards 23,500–23,400. However, sustaining above this level could still increase the possibility of a move towards 24,200; only above that can levels of 24,350–24,500 be seen, according to experts, who expect the market to remain cautious next week.
Oil Prices and Inflation Concerns
Spiking oil prices well above $110 a barrel, amid escalating US-Iran tensions and continued disruption of oil supply through the Strait of Hormuz, are intensifying inflation concerns and fears of a widening deficit. Growth worries, a depreciating rupee against the US dollar, and persistent FII outflows have also contributed to selling pressure in the market.
For more information on oil prices and inflation, please visit our website.
Nifty 50 Outlook for May 4
If Nifty 50 fails to defend 23,800 next week, further selling pressure may drag it towards 23,500–23,400. Sustaining above 23,800 could still increase the possibility of a move towards 24,200.
Experts expect the market to remain cautious next week. To learn more about Nifty 50 outlook, check out our latest updates.
Bank Nifty: Immediate Support at 54,400
The banking index continued to underperform the benchmark Nifty 50, falling 540 points (0.98 percent) to close below the 55,000 level at 54,863. The Bank Nifty fell below the 38.2 percent Fibonacci retracement level (of the April rally) intraday—around 54,500–54,600—before showing a recovery of more than 400 points.
For detailed analysis of Bank Nifty technical analysis, visit our website.