Nifty Prediction for Monday – 6th May 2024. What to Expect?

On the previous trading day, Nifty Opened more than 100 points at the 22,766 level, but it wasn’t able to hold the opening gains and started falling after making an intraday high of 22,794.70 – and fell more than 1.5% from the day high making an intraday low of 22,348 and gives closing at 22,475.85 which is 0.76% lower from the previous closing.

Looking at the sectors, most of the sectors were trading in red as Oil and Gas, Reality, Telecom, Auto, IT, and PSU Bank were down by around 1% each, and on the other hand, Nifty PSE and Nifty Pharma were up by 0.45% and 0.08% respectively.

Worst Stocks – L&T, Maruti Suzuki, Bharti Airtel, Reliance Industries, and Nestle India were down by more than 2% each.

Best Stocks – Coal India, ONGC, Grasin Industries, and Dr. Reddy’s Lab

Related: Bank Nifty Prediction for Monday, 6th May 2024

Nifty Prediction Today

On Friday, Nifty 50 fell almost 450 points from the day high of 22,794 level and this indicates that the Bears are too strong at the 22,800 level that it would not easily let the Bulls conquer this level – until it will not crosses and tests the 22,800 level we will not gonna see any big move in Nifty 50.

This is obvious because markets are trading near their all-time high, and the General Election 2024 is going on, so market participants are just digesting the news and the prediction for the coming Government, till then Indian markets are like a roller coaster (in my opinion).

As the market needs a stable government, it’s more likely that if the current NDA government comes into power then we can see a rally, and if the government changes then a huge correction is predicted.

Anyway, for Monday – I am expecting Nifty to trade in green as Nifty is turning bearish after making a Bearish Engulfing Pattern, but there is a high possibility of a pullback toward the 22,650 level.

But if it falls further, then Nifty may seek support around the 22,375 and 22,250 levels.

Green Lines are the Support Levels and Red Lines are the Resistance Levels.

Looking at the chart the Nifty seems weak, but it’s taking support around our predicted level at 22,400, so we have the first support for Nifty at 22,400 level followed by 22,300 and 22,225 levels.

On the Upper side, Nifty may face resistance from the 22,515 level followed by 22,600, 22,700, and 22,800 levels.

Here are the OI data of Nifty 50 for Today,

Note:- This OI Data is provided via Sensibull and it has a lot of features if you are an Option Trader, and you access all the Pro Things for “FREE” by opening your Demat Account with Zerodha.

Nifty looks bearish as it makes a Bearish Engulfing pattern on the Daily time frame, but there is strong support in Nifty placed on the lower levels so for Monday, I am expecting a reversal toward the 22,650 level.

So, here is the trade setup for Nifty for Monday,

If Nifty opens in green then wait for it to stabilize above the 22,500 – 22,520 level then a long trade can be initiated till the next resistance level of 22,600 level.

But, if the Nifty falls further, then keep watching and wait for it to reach the support level of 22,375, and reverse then you can go long, as Global markets are Bullish, and Gift Nifty is also up by 110 points from the previous close, as of writing this article.

I do not suggest going short in Nifty on Monday.

Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.