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The Nifty 50 and Bank Nifty corrected after a day of rally, forming bearish candlestick patterns on the daily charts amid above-average volumes. This, along with the sharply increasing volatility index, signals underlying weakness in the market. The India VIX was above the 21 mark on May 8. Hence, according to experts, if the index decisively breaks 24,000 support, 23,850–23,800 can’t be ruled out in the upcoming session. Below this, the fall could extend toward the 23,600–23,500 zone. Meanwhile, if the Bank Nifty breaks the 53,900 support (20-day EMA), levels of 53,500 followed by 53,000 are the levels to watch on the downside.
On Thursday, May 8, the Nifty 50 fell 141 points to close at 24,274, and the Bank Nifty declined 245 points to 54,366. The market breadth was in favour of bears, as about 1,812 shares were under pressure compared to 729 advancing shares on the NSE.
Nifty Outlook and Strategy
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities
While the broader structure still hints at consolidation, the inability to break past the stiff 24,400–24,500 resistance zone, where aggressive Call writing is evident, suggests that bulls are running out of steam. Momentum indicators are cooling off, and the RSI (Relative Strength Index) slipping hints at a weakening grip by buyers. On the flip side, 24,000–24,200 continues to act as a crucial cushion, with hefty Put writing reinforcing that base. With India VIX spiking over 10 percent and breaching the key psychological mark of 21, market nerves are clearly on edge, signaling heightened uncertainty and paving the way for sharp swings and intraday volatility in the sessions ahead. Until Nifty breaks above 24,500, the tone stays guarded, keeping a 'sell on rise' strategy firmly in play.
