HOW WILL BE THE MAY F&0 SERIES FOR NIFTY & BANKNIFTY CALL PUT ??? STOCK RESULT IN MAY 2022

Global markets performed very well last night and early Friday morning. As a result, our markets started the day with a strong rise at the 17300 level. However, without wasting much time, Nifty returned to its equilibrium to match what SGX Nifty was indicating. The Nifty corrected almost 60 points from the opening high and tested almost 17050. The powerful bulls jumped at this opportunity and seized it at 17238. Markets then reversed and with the help of broad-based buying in the second half, Nifty rushed there to 17377 towards 17300. Finally, Nifty ended the 1st day of the May series on a promising note around the 17200 mark.

Over the past week and a half, our markets have shown some resilience relative to most global peers. This is an indication of inherent strength and therefore the moment we see some relief around the world, our markets would be the first to bounce. We remain hopeful as long as 17200- 17000 is successfully defended. Now, with the last two weeks of range bound action, the daily time frame chart is showing a triangle pattern and prices are slowly approaching their peak. Therefore, the breakout in both directions is imminent.

As of now, we expect it to happen in a northerly direction where 17400- 17500 are the levels to watch out for. The moment we surpass that, we could see how many individual stocks participate in the next leg of the rally. For Bank Nifty the levels to watch for would be 36800- 37000 on the higher side and the sacrosanct support zone sits at 36200- 35600.

During the april series we observed a few brief formations, but it seems that most of them are out of system now. Rollover on Nifty and Bank Nifty was 78% and 85%, respectively, which is on the downside compared to the three-month average. Stronger hands added bearish bets throughout the series and overran those positions. Their long-short ratio is 35%, which clearly indicates that they are now oversold. It would be very interesting to see their action, any cover is a very encouraging sign. Most key indices are placed at a crucial point, waiting for a trigger to make a move. We're hoping to witness a long-awaited breakout early in the May series that will surely bring back the wider smiles on traders face.