Technical View: The Nifty 50 performed strongly on 12 May with a rise of about 4 percent. After the announcement of a ceasefire between India and Pakistan, the biggest single day rally was seen in the market in four years. Along with a successful trade agreement between the world’s largest economies, the US and China, the sharp decline in India VIX also brought the sensations from the market to height. The Nifty 50 on Monday showed a strong consolidation breakout, opening with a gap-up of over 400 points. It maintained its top Momentum throughout the session. The index rose to 917 points or 3.82 percent to 24,925. This is the highest closing level after October 16, 2024. It was the biggest single day lead after February 1, 2021. It also created a strong bullish candle on the daily chart. This pattern is further indicating a healthy trend.
How can Nifty’s move be on Tuesday 13 May
The index not only compensated all the damage caused by India-Pakistan tension, but also crossed the Swing High 24,860 of December 2024 in the same session. The next resistance in this is expected to be around 25,200-25,300 levels. According to experts, a breakout above this zone can open the door for a rally towards 25,700. While the previous resistance at 24,590 can now serve as support.
The index is now trading above all major moving averages – 10, 20, 50 and 200 -day EMAs. All of them have a tendency upwards.
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Srikanth Chauhan of Kotak Securities Said that it would be an ideal strategy for day traders to buy and sell on Intrade Dips. According to him, at the upper level, the zone of 25,200–25,300 remains the major resistance zone. Whereas traders can consider exiting the long position when the index is below 24,590.
How can Bank Nifty move on Tuesday 13 May
Bank Nifty also saw a strong rise. The banking index opened with a gain of over 1,000 points. It rose 1,788 points or 3.34 percent to close at 55,383. It has created a long bullish candle on the daily time frame after Dozi candlestick in the last season. This pattern is further indicating positive trends.
Anshul Jain of Lakshmishree Investments Said, “This bullish close of the index is indicating strength. Any immediate decline towards 55,000 can provide a solid long opportunity.”
According to him, the index is now facing immediate resistance around 55,700. The way to 56,100 in the near period when a breakout above this level comes out. He advised the traders to find shopping opportunities at the time of recession and use a tight stoploss to maintain the Momentum.
Meanwhile, India VIX means that the gauge of fear fell 14.98 percent to 18.39. Which made the trend more favorable for the bulls. The further decline in VIX can strengthen the bullish sentiment.
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