Nifty Prediction for Tuesday, 7th May 2024. Will Nifty Fall Further?

In today’s session, Nifty opened a little higher from the previous closing but it will not be able to hold the early gains and ended 33 points or 0.15% lower, taking support around the 22,400 level.

Nifty is following this trend from the last two trading sessions of Opening high and ending low. Anyway on Monday, we saw a sharp selling in almost all the PSU stocks, especially PSU Banks, where Power Finance and RECL witnessed the most selling, as they were down by around 12% and 10% in the early trading session.

Looking at the Sectors, where IT and Realty sector leads the market with +0.94% and +2.75% gains, providing major support to Nifty, and on the other hand Nifty PSU Banks, Energy, PSE, CPSE, Commodities, and Oil and Gas were the top losers, as each of them were down by more than 1% and PSU Banks and Nifty PSE witnessed the most selling as they were down by -3.66% and 2.78% respectively.

Looking at the stock in Nifty 50,

Top Losers: Titan, SBI, NTPC, Adani Enterprises Reliance, Coal India, and BPCL

Top Gainers: Kotak Bank, Britannia Industries, TCS, HUL, Mahindra & Mahindra

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Nifty Prediction Today

Nifty Traded sideways, after opening higher on Monday between the range of 22,409 – 22,588 and ended 33 points lower from the previous closing taking support around the 22,400 mark, around our predicted support level.

But this isn’t a good sign for Nifty as it wasn’t able to hold above the 22,500 from the last 2 trading sessions, indicating that bears are getting stronger after every session. Also, Nifty is forming a Descending Triangle-like Pattern which is a bearish pattern, so we can say that there may be a fall in the market ahead.

Anyway, for Tomorrow – Nifty is likely to open flat or a little higher, continuing the past trend and then it may fall and take support around the 22,400 level and further 22,350 level, but any fall after this level, may turn the overall market sentiment to Bearish, and we may witness a major fall in the market this week.

But – But – But if Nifty bounces back from the support level of 22,400 and breaks the goes above the opening level then we may see Nifty above the 22,500 and around the 22,600 level.

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

Nifty is taking support around the 22,400 level from the last two trading sessions, and this indicates that 22,400 is a strong nearby support for Nifty, followed by 22,300 and 22,200 levels.

On the upper side, Nifty is facing resistance from the 22,500 level followed by 22,600 and 22,700 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.

As of my analysis, Nifty may witness a minor fall and then it move upward so, here is the trade setup based on the Analysis.

If Nifty opens Gap up and somehow manages to stay above the 22,500 level then we can see a rally toward the 22,600 level, so if it stays or takes support at the 22,500 level then we can go for Long trades in Nifty on Tuesday, the 7th May 2024.

But, If Nifty opens lower, and breaks the support level of 22,400 then wait for Nifty to retest the 22,400 level and confirm it as a resistance level then we can see a major fall in Nifty, so you can initiate a short trade till the next support level and continue to trail the stop loss as the Nifty breaks the another support level.

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