Trade Setup for May 11: Nifty stuck in a range but broader markers see decisive moves

The benchmark Nifty 50 index opened with a gap-down on Friday and traded within a narrow range of 24,254 to 24,127 through the session before settling at 24,176, down 0.62%.

Markets remained under pressure for the second straight session, although the index managed to hold above its 21-day moving average support near the 24,140 mark on a closing basis.

On the sectoral front, Nifty IT emerged as the top gainer, followed by Nifty Capital Markets. Meanwhile, Nifty PSU Bank and Nifty Financial Services ended as the worst-performing sectors.

Among individual stocks, Titan and Apollo Hospitals led the gainers, while SBI and Coal India were among the top laggards.

Broader markets, however, continued to outperform benchmark indices. The Midcap index touched a fresh record high before ending 0.15% lower at 61,911, while the Smallcap index extended gains for the fourth straight session and also hit a fresh peak.

For the week, benchmark indices remained largely range-bound amid a lack of strong directional momentum. Despite the choppy trade, the Nifty ended the week with gains of 0.74%.

The total market capitalisation of BSE-listed firms rose by more than ₹10 lakh crore during the week.

Mahindra & Mahindra saw the biggest increase in market capitalisation, followed by Adani Ports, HDFC Bank, and Asian Paints. On the other hand, SBI, Bharti Airtel, and TCS witnessed a decline in market value.

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Global cues remained supportive, with US markets ending higher on Friday. The S&P 500 and Nasdaq Composite scaled fresh record highs after stronger-than-expected US jobs data reinforced optimism around the resilience of the American economy despite geopolitical tensions in West Asia.

On the technical front, Sudeep Shah of SBI Securities said immediate support for the Nifty is placed in the 24,000-23,950 zone.

Shah said that a sustained move below this range could drag the index towards 23,800 and then 23,650 in the near term. On the upside, resistance is seen in the 24,330-24,350 zone.

Rajesh Bhosale of Angel One said the 24,500-24,600 zone remains a stiff hurdle for the Nifty. A decisive breakout above this range could trigger a fresh rally towards the 25,000-25,100 zone.

Nilesh Jain of Centrum Finverse said the broader market structure remains sideways-to-positive, with a gradual recovery towards 24,300-24,500 likely in the near term.

He added that the crucial support level remains around the 50-DMA near 24,000.

Rupak De of LKP Securities said the index has slipped back below the 50 EMA after briefly moving above it, indicating renewed weakness in sentiment. Heavy call writing around the 24,200 strike suggests cautious positioning.

According to De, if the Nifty sustains below 24,200 on Monday, it could see further correction towards the 24,050-24,000 zone, while a move back above 24,200 may trigger a recovery towards 24,350-24,400.