NIFTY

 NIFTY - On Friday, we had an outside day candle and a weekly one-day reversal candle which suggests shifting trends but does not suggest an immediate sharp move in the opposite direction of the trend. However, it sets us up on alert to look for signs of reversal in the ensuing weeks that follow.

Sellers have stepped in ahead of 22800 level and we observe negative divergence of RSI.

Levels on Nifty: Closing Level as on 05 May 2024 - 22423

Index	S3	S2	S1	R1	R2	R3	R4
NIFTY	21860	22000	22337	22620	22800	22900	23038

 India VIX has risen steadily in the last 8 session from 9.95 to this week’s high of 16.96 as Lok Sabha Elections are underway. Low voter turnout in phase 1 and phase 2, generally considered negative for the incumbent, could possibly translate into a lower margin of victory and that has spurred buying in vols.

SBI had a massive down day with no catalysts except for the results announcement scheduled on May 9. Reliance has been consolidating 2828 – 3014 after the massive move higher and looks technically weak. L&T has made a head and shoulders on the daily and looks weak.

Though options are expensive, but I prefer buying put options on NIFTY.