Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE [EasyDNNnews:PaidContentStart]

SPOT NIFTY : 
On Thursday, the Nifty 50 opened with a 171 point gap-up and started the session above its 50-DMA. However, the early optimism did not last long. Selling pressure emerged at higher levels, and the index gradually surrendered its gains as the session progressed. By the close, Nifty had slipped into the red and ended below the 50-DMA. 

The price action was disappointing from a technical perspective. The index formed lower highs on the hourly chart and closed below both the 8-EMA and 50-DMA. Although Nifty moved above the previous high of 23,839 and came close to testing the 20-DMA, it failed to sustain at higher levels. More importantly, the attempted pennant breakout did not hold, as the index slipped back into the trading range in which it has been moving for the past seven sessions. 

Nifty traded in a wide 263-point range, reflecting elevated Intraday volatility. With the index stuck in a narrow band for nearly seven trading sessions, momentum indicators remain muted. The 14-period daily RSI is flat around the 45 zone, while the MACD line also lacks direction. The index continues to move in an alternate positive and negative pattern, which points to indecision rather than trend strength. 

The late-afternoon recovery attempt also failed, as selling reappeared even on minor bounces. The Relative Strength of the index remains weak, suggesting that broader participation is still missing. 

In the current setup, a decisive closing breakout is essential for the next directional move. A close above 23,860 would be needed to revive bullish momentum. On the downside, a close below the 23,400–23,440 support zone would weaken the structure and could open the door for a move below 23,000 in the short term. 

NIFTY DERIVATIVES: 
After closing at 23,689.60 last Thursday, Nifty traded within a narrow range during the week and ended today’s session marginally lower at 23,654.70. The index attempted to move higher during the week, touching a high of 23,859.90, but failed to sustain above higher levels and witnessed mild profit booking. On a weekly basis, Nifty declined marginally by 34.9 points. ATM Implied Volatility (IV) is currently placed around 13.28, indicating moderate option premiums. India VIX stands at 17.82, reflecting stable volatility conditions in the market. The Put-Call Ratio (PCR) for the upcoming weekly expiry is positioned at 0.9464, placing it in the neutral zone. 

For the coming weekly expiry, total call open interest stands at 28,74,036 contracts, while total put open interest is at 24,36,045 contracts. Among the call options, deep OTM strike 25,000 carries the highest open interest at 2,04,104 contracts, followed by 24,000 with 2,01,705 contracts and strike 24,500 with open interest at 1,61,654 contracts, respectively. On the put side, the out-of-the-money strike 22,500 has the highest open interest at 1,68,148 contracts, followed by strike 23,000 with 1,45,290 contracts and strike 23,500 with 1,17,576 contracts. The Max Pain level for the upcoming expiry is positioned at 23,700. 

STOCK STRATEGY 

ANGEL ONE LTD. ...... BUY ......CMP ₹339.70 

BSE Code ...... 543235 
Target 1 .... ₹379 
Target 2 .... ₹390 
Stoploss ...₹308 (CLS) 

• Current Observation: Formerly known as Angel Broking Limited, Angel One Limited was incorporated in 1996 and is engaged in retail broking across equity, commodity and currency segments. The company is a member of major exchanges, including BSE, NSE, Metropolitan Stock Exchange of India, Multi Commodity Exchange of India and National Commodity and Derivatives Exchange. It also operates as a depository participant with Central Depository Services (India) Limited. 
• On the technical front, the stock has delivered a strong breakout from a five-week tight base and closed above its previous pivot level. It also recorded its highest closing in 122 weeks, supported by above-average volumes, which adds strength to the breakout. The Relative Strength line has moved to a fresh high, indicating clear outperformance against the broader market. 
• The stock is trading comfortably above all key moving averages and remains 22.88 per cent above its 50-DMA. The moving average ribbon is in an uptrend, while the Bollinger Bands are expanding after a period of contraction, suggesting rising momentum. The MACD is close to generating a fresh bullish signal, and the RSI remains in the bullish zone across multiple timeframes. Additionally, the Stochastic RSI continues to stay positive, while the Elder Impulse system has formed a strong bullish bar. 
• Overall, the stock has confirmed a bullish breakout. A sustained move above Rs 340 could strengthen the positive setup and open the way for Rs 379–390 levels. The stop loss can be maintained at Rs 308. 

REVIEW OF STOCK STRATEGY 

In issue no. 31, dated May 07, 2026, we recommended purchasing shares of Astra Microwave Products Ltd at Rs 1,162.4. The stock was near to marking a breakout of the falling trendline of the trend continuation price pattern above the 200DMA at the time of recommendation. Post recommendation, it witnessed some sell-off due to the market's recent correction and entered the previous consolidation zone; it lost its momentum and retraced towards recent lows exactly from the last swing high level. This can be the preparation for the next up move; thus, we expect a rally towards our target soon; hence, we recommend holding the position with the mentioned stop-loss.

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