Stock Market Update: Benchmarks Indices to Remain Close Today, Outlook for May 4th

The Indian stock markets will remain closed on Friday, May 1, in observance of Maharashtra Day. The trading activity on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain shut today.

On Thursday, the Sensex declined 582.86 points or 0.75% to close at 76,913.50, while the Nifty 50 was down 180.1 points or 0.74% to settle at  23,997.55.

Sensex Outlook

Amol Athawale, VP Technical Research at Kotak Securities, said the short-term market texture is volatile and non-directional. On the lower side, he said Sensex is consistently taking support near the 20-day SMA (Simple Moving Average) at 76,700, while the 50-day SMA at 78,300 is seen acting as a consistent resistance zone for traders.

"We are of the view that as long as the market is trading within this range, non-directional activity is likely to continue. On the higher side, if the index succeeds in trading above 78,300, the chances of reaching 79,200 would increase. However, while below 76,700, selling pressure is likely to accelerate," he said. 

Nifty 50 Outlook

Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse, said Nifty 50 has found strong support at its 21-DMA, placed around 23,800, and as long as it holds above this level, the pullback is likely to continue. 

"The immediate resistance is seen at the 50-DMA near 24,140; a decisive breakout above this could pave the way for an upside move towards 24,500. On the downside, a breach below 23,800 may drag the index towards 23,500 levels," he said. 

The India VIX index declined 8% during the week to close around 18. A further easing in volatility would support the bullish momentum, Jain said.

Also Read: US Stock Market Today: Wall Street Trades Mixed as Oil Prices Fluctuate Sharply on Geopolitical Risks and Earnings

Bank Nifty Outlook

Bank Nifty on Thursday opened with a gap down and traded lower to an intraday low of 54,440. However, buying interest at lower levels led to a steady recovery, with the index shedding some of its losses and closing at 54,863, down 0.98%. 

On the daily chart, it formed a red doji candle, which suggests accumulation at lower levels. Going ahead, the immediate support for Bank Nifty is placed in the 54,400-54,300 zone.