Tradeswift@tradeswift
Daily Morning Market Brief
Date: 04/05/2026
Markets are expected to start the day on a positive note tracking positive global cues and on lower-than-expected crude oil prices (However still above $108). GIFT NIFTY indicates a gap up open of around 150 points. As the day will progress, the focus will shift to state election result and will be expected to remain volatile. AUTO space will react to better-than-expected auto sales numbers for most of the auto companies. Largely, election results, crude oil prices and rupee movement will drive the markets today. Coming on to the US markets, on Friday NASDAQ closed at a record level ab0ve 25000, while DOW and S&P 500 ended flat. Today US futures are trading on a flat to positive note. Asian markets are also trading upbeat with JAPAN, CHINA and THAILAND are closed today. No results from NIFTY 50 will be declared today.
Thursday (SENSEX expiry day) was the tale of two halves, in the morning session due to rising oil prices and fed rate decision, rupee was under pressure which led to a major sell off in the markets. At one point both NIFTY (23800) and SENSEX (76280) were trading near their second support zone with BANKING space in turmoil but as the crude oil started to slip from day’s high, our markets also showed signs of recovery. In the mid-afternoon session market saw a V – shaped recovery which settled near the pivot levels at the end of the day. NIFTY closed at 23997.55, while SENSEX closed at 76913.50. The pivot level for NIFTY was 24000 & for SENSEX it was 77000. BANKNIFTY and FINNIFTY once again proved to be weaker than NITY and SENSEX and MID CAP & SMALL CAP space also lost some momentum. Advance & decline for NIFTY 500 was 131:369. Amid broad-based selling pressure, IT & PHARMA manged to stay in green, while METAL was the worst hit with decline of 2.12%. PSUBANKS & REALTY shed more than 1.5%. INDIA VIX rose 5.85% to close at 18.46.
Today, the level of interest will be 23800 on the downside and 24300 on the upside. The immediate support for NIFTY post opening will be at 22960 followed by 23800. Any sustained selling pressure below 23800 can take NIFTY to 23670 as well and on the up side 24135 will be the first resistance point and then at 24280 - 24350. A close above 24350 will help bulls take it to even 23500. For BANKNIFTY the lower base will be around 54496 and then at 54133. The resistance will be at 55300 - 55476.
On the OI front, the put writers and call writers are having a close fight for domination at 24000. The OI addition for both call & put writers at 24000 is around 53L. With two days to weekly expiry, at 23800 put writers enjoys the second highest OI, while the highest OI for call writers is at 24300. Therefore, the broad range for the 05 – MAY expiry is 23800 – 24300 with 24000 acting as a pivot. For SENSEX, similar to NIFTY, the call and put writers have close fight at 77000. On the down side 76500 hold the key and on the upside 77500 has the second highest OI, representing the broad range for today.
Trader and investors should respect the volatility the same way they respect the support and resistance zones. The markets are likely to trade within the broad range, where it is advisable to be stock specific rather than index specific. A major sell off, post result declaration cannot be ruled out. Reduced position size should be preferred to avoid getting trapped in the wild swings. Patience is the key, wait for the data to mature and then react to it. Pick stocks with decent earnings rather than deciding on the intraday moves in sectors & stocks. Trade for the opportunity and not as a compulsion. Do follow simple strategies and trade set ups. Stocks recommended earlier and ETFs should be preferred for investments.
Thanks & Regards
Team Tradeswift
