Nifty 50 Prediction for This Week 8-12 May 2023: Last Friday, the massacre at the HDFC twins caused the Nifty (18,069.00), one of India’s benchmarks, to drop 186.80 points, or 1.02%. The Nifty 50 closed the previous week on a depressing note due to the dramatic decline in banks and financial sectors. Despite the Nifty’s main trend being up, investors were uneasy as a result of the abrupt news from MSCI regarding the HDFC twins.
The Nifty 50 gained only 4 points for the week on a weekly closing basis. It indicates that index lovers did not receive any benefit from the previous week. The upcoming week will be difficult due to trouble in the Bank Nifty. For a surge in the Nifty, all counters except banks and financials must perform strongly. However, recovery for the HDFC Twins is necessary this week. Not to forget that both HDFC and HDFC Bank are among the top 5 Nifty 50 companies.
Nifty 50 Prediction for This Week 8-12 May 2023
Technical Analysis of the Nifty
Primary Trend: Up and Strong
In all short- to medium-term time frames, the Nifty 50 chart structure is strong as compared to the Bank Nifty. Therefore, there is a higher likelihood of finding support at the level of 18000–17800 given the strength of the Nifty’s basic trend. So, any decline in price towards this level will be an excellent opportunity to build up long positions. When Nifty breaks the lower threshold on a closing basis, we will witness a violation of the main trend. Therefore, the chance of a new high will arise as long as Nifty trades and maintains above that range.
Currently, the Nifty 50 finds significant support between 17980 and 17880 and resistance between 18230 and 18300. The Nifty needs to establish support at 18000, the first significant psychological level, in order for the fundamental trend to continue. It may, however, return to the support region around 17800 if it consistently violates 18000. On the upside, it must break through and close above the indicated resistance level in order to create a new high.
Nifty Levels This Week, May 8-12, 2023
Nifty 50 Target This Week, May 8-12, 2023: Upside 18200–18500 and Downside 17980-17700.
Support and Resistance Levels of Nifty
| Nifty Resistance Levels | ||
| 18220 | 18350 | 18480 |
| Nifty Support Levels | ||
| 17980 | 17900 | 17720 |
Conclusion
The Indian equity market will probably try to recover after a disappointing week. But the recovery of the Nifty will depend on global market conditions and the Bank Nifty. Despite recent global turmoil, the Indian market has been on an upward trend. But cautious buying in response to the MSCI news of HDFC Twins slowed its momentum last week.
Market participants will keep a close eye on HDFC Twins and broader market conditions to see if the Indian market can continue its upward trajectory. Other sectors must also perform well for the Nifty 50 to keep rising steadily, not just banking and finance.
Similarly, for those considering short positions on the Nifty, it may be advisable to wait for the index to surpass the high of the previous week before entering a trade.
Please note that all levels of Nifty discussed above, are spot prices.
Chart Credit: Chartink
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