Trade Setup Friday: Sensex, Nifty Support Levels; 3 Stocks Are Top Picks On Akshaya Tritiya; Find Out

After a sharp selloff, the Indian stock market has the potential of opening in the green on Friday owing to positive trends in global cues. In the early trade, Gift Nifty found support of around 22,167.50 and held a marginal upside. Meanwhile, Asian stocks gained momentum after Wall Street closed higher overnight as traders hoped shot of early rate cuts by the Fed after weak employment data.

Technically, the support levels for Sensex and Nifty are seen to be around 72,800 and 22,100, while Bank Nifty's daily range is likely to continue from 47,000 to 48,000 on May 10. It is also expected that if Nifty slips pass below 21,700, more bearish trends could occur. For now, volatility is likely to continue in the market in the near term.

In the previous session, Sensex ended at 72,404.17, down by 1062.22 points or 1.45%, while Nifty 50 ended at 21,957.50 lower by 345 points or 1.55%. Bank Nifty shed over 533 points or 1.11% to 47,487.90%. While India's VIX index has surpassed the over-18 mark with gains of 6.55% to close at 18.20 on Thursday. Except for auto stocks, all other sectoral indices nosedived by 1% to 3.5%.

Siddhartha Khemka, Head - of Retail Research, Motilal Oswal Financial Services said, "Continued FIIs selling and fear of not-so-favorable election outcome have dented market sentiments. With a voter turnout ratio (65.68%) slightly lower than in 2019 for the same seats (except Assam), investors have turned nervous about BJP's expected seat count. We expect this volatility to continue in the near term in the absence of any major positive trigger. Now till Nifty holds below 22000 zones, weakness could be seen towards 21700."

In technical terms, Shrikant Chouhan, Head of Equity Research, at Kotak Securities said, On daily charts, the index has formed a long bearish candle, which supports further weakness from the current levels. We are of the view that, the short-term market texture is weak but due to temporary oversold conditions, we could see a one-technical pullback rally from the current levels. For the traders now, 22000/72550 would act as a key level to watch out for. Above 22000/72550, the market could bounce back till 22100-22150/72300-72500. On the flip side, below 22000/72550 the weak sentiment is likely to continue. Below which the market could slip till 21850-21800/72100-72000."

To investors, Ajit Mishra - SVP, Research, Religare Broking said, "Nifty has broken below both the lower boundary of its upward channel and the support of the 50-day exponential moving average (DEMA) around the 22,150 level. The ongoing increase in the volatility index suggests that the current market sentiment may persist, potentially leading Nifty to test the 21,800-21,850 zone soon. Traders are advised to adjust their positions accordingly and prioritize stock selection."

Some of the big earnings to watch out for today are of Tata Motors, ABB India, CIPLA, Union Bank of India, Bank of Baroda, Bank of India, Polycab India, Punjab & Sind Bank, Kalyan Jewellers, and Thermax.

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher expects Nifty to find support at 21,800, while resistance is likely to be around 22,100 on Friday, while Bank Nifty is expected to find support at 47,000, and resistance is seen around 48,000.

Stocks To Buy On May 10:

Koothupalakkal has recommended buying three stocks on May 10. These are:

- BUY GODFREY PHILLIPS cmp 3448.75 Stop Loss 3370 Target 3580

- BUY TVS MOTOR cmp 2063 Stop Loss 2020 Target 2130

- BUY CENTURY TEXT cmp 2000 Stop Loss 1960 Target 2080

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.