Weekly Market Outlook for 2 May to 5 May

Weekly Market Outlook for 2 May to 5 May
Weekly Market Outlook for 2 May to 5 May

by Ruchit Jain Last Updated: May 02, 2023 - 10:51 am 268 Views

Nifty resumed its uptrend at the start of the week and rallied higher throughout the week to end well above 18000 with weekly gains of two and a half percent. The broader markets participated well in this upmove as most of the sectors rallied higher and the midcap and smallcap stocks posted decent gains.


Nifty Today:


The market rallied sharply in the April month as the indices recovered due to short covering initially and it then witnessed fresh long positions as the broader markets saw good buying interest. Nifty posted monthly gains of 4 percent in this month while Bank Nifty posted gains of over 6 percent. Now this is clearly an ‘Impulsive’ rally in the index which can be seen in the five wave structure in Nifty. The RSI oscillator is still in ‘Buy mode’ on the daily chart and the ‘Higher Top Higher Bottom’ formation indicates a continuation of uptrend. The support base have shifted higher now with short term supports placed around 17900 and 17830 while positional support has shifted to 17650. On the higher, the index has ended near the 61.8 percent retracement of the previous correction from 18880 to 16830 which is around 18100. Now since the index has almost achieved this target, the follow up move will be important and if this gets surpassed, then the index could approach 18200-18270. In derivatives  segment, overall positions are light and fresh build ups will be important to watch out. Since the broader trend is positive, it is likely that long formations will be seen but whether that happens at current levels or on dips, needs to be seen. 


Nifty reclaims 18000 led by broad market participation


Weekly Market Outlook Graph


Looking at the above data and the chart structure, traders should continue to trade with a positive bias and look for buying opportunities. The readings on the hourly charts are in the overbought zone and thus if there’s any negative crossovers there in the coming week, then markets could provide buying opportunities at lower levels near mentioned supports.  


Nifty & Bank Nifty Levels:


Nifty Levels

Bank Nifty Levels

    Bank Nifty Levels

Support 1




Support 2




Resistance 1




Resistance 2





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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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