Market Forecast: Nifty 50 & Sensex (SENSEX) Trading Insights for May 30

• The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday following losses in global peers.
• The trends on Gift Nifty also indicate a negative start for the Indian benchmark index.
• “On the daily chart, the uptrend has weakened. Wednesday’s negative closing has led to the Nifty closing below the previous swing high of 22,795,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.

Get the latest insights on the Indian stock market as Sensex and Nifty 50 brace for a negative opening amid global market losses.

Nifty 50 Prediction

The Nifty 50 index declined 183 points to close at 22,704 on May 29 as bears remained in control, leading to a sharp fall.

Option Data Insights

“During the day, heavy call writing activities were seen at the 23,000 and 22,800 strikes, while put writing activities were visible at the 22,800 and 22,700 strikes. The option data suggests that Nifty might expire around 22,800. On the other hand, a fall below 22,700 might trigger additional selling pressure in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.

Bank Nifty Prediction

The Bank Nifty ended 641 points lower at 48,501 on Wednesday and formed a bearish candlestick pattern on the daily timeframe.

Support and Resistance Levels

“The Bank Nifty index has demonstrated a clear shift in sentiment by opening below its support level at 49,000 and trading beneath it. It closed near its 21-day EMA at 48,400. If Bank Nifty fails to maintain above the 21-day EMA, further selling pressure may drive it down to 48,000,” De said.

Conclusion

The Indian stock market is poised for a volatile session with Nifty 50 and Bank Nifty showing bearish trends. Investors are advised to proceed with caution and consider adopting strategies like F&O Strangles, Debt spread, and selling futures with covered calls to navigate the market’s corrective moves. Long-term investors might find buying opportunities at support levels, but caution is recommended as the market approaches the election result announcement.