Market Outlook for May 9
There was no obstruction in the withdrawal of foreign funds. Apart from this, no major positive has been seen in the current results season. Due to which investors have become cautious.
Market Outlook: Even today the market remained dominated by decline. After the initial fall, there was a slight recovery from the lower level but the market closed on the decline. Sensex fell 45 points and closed at 73466 while Nifty closed without change at 22305.
Today maximum buying was in power and auto shares. Whereas profit booking was seen in banking and realty stocks. There was a rise in consumer goods, oil-gas and metal stocks. Recovery was seen in midcap and smallcap stocks.
There was good recovery in government companies. Nifty PSE index is up about 1 percent today. Nifty PSU Bank index closed up by about 1.5 percent. Despite this, Bank Nifty fell by 264 points and closed at 48,021. Midcap fell 362 points and closed at 50,036.
Today there was buying in 15 out of 30 Sensex stocks. There was buying in 26 out of 50 Nifty stocks. There was selling in 7 out of 12 shares of Bank Nifty. Today, the rupee weakened by 1 paise and closed at Rs 83.52 per dollar.
How can the market move on May 9?
Prashant Tapse of Mehta Equities says that due to lack of any new positive trigger, investors adopted a cautious approach. The market closed flat with a negative trend with profit booking in select banking and IT stocks.
Even strong signals from the European market could not support the market. There was no obstruction in the withdrawal of foreign funds. Apart from this, no major positive has been seen in the current results season.
Due to which investors have become cautious. Besides, it being election season, no one wants to take a long shot. This has also created pressure on the market.
Deven Mehta of Choice Broking says that after opening with a fall, Nifty maintained a neutral stance amid high volatility throughout the day. Bank Nifty also faced volatility but it closed with a decline on the day of weekly expiry. But Bank Nifty managed to close at 48021.10 while maintaining the strong support of 47900.
Deven further said that Nifty has support around 22225-22175. Talking about OI (Open Interest) data, on the call side the highest OI was seen at 22500 followed by 22700 strike price.
Whereas on the put side the highest OI is at 22000 strike price. On the other hand, Bank Nifty has support at 47700-47500 while resistance is at 48300 and 48500 levels.