Stock Market Technical Analysis | 4th to 8th May 2026 Weekly Wrap

Markets maintained a positive undertone with strong participation from auto and broader markets, while volatility continued to cool off.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded volatile in the previous week before closing with 0.74% gain at 24176 level. Banking Index performed in line with the benchmark index as it closed with 0.82% gain at 55311 level.
• Among the Nifty constituents, M&M and SHRIRAMFIN outperformed the benchmark index as they closed with 7.52% and 7.51% gains while ONGC and COALINDIA underperformed as they closed with 6.79% and 5.20% cut respectively. Among the Bank Nifty constituents YESBANK outperformed the benchmark index as it closed with 15.10% gain while SBIN underperformed the benchmark index as it closed with 4.60% cut.
• Among sectors, NIFTYAUTO index outperformed the benchmark index during the previous week as it closed with 5.18% gain while NIFTYPSUBANK index underperformed as it closed with 1.30% cut. Broader market outperformed the benchmark index as both MIDCAP index and SMALLCAP index closed with 3.56% and 4.05% gains respectively.
• Volatility index (India VIX) closed with 6.49% cut at 16.84 level.
• FII were net sellers as they sold stocks worth Rs 11,072 Cr while DII were net buyers as they bought stocks worth Rs 21,393 Cr during the previous week in the cash segment.
• Globally, equity markets traded with positive bias as both US market (DJIA) and European market (STOXX 600) closed with 0.23% and 0.10% gains respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 24200 for both side call and put side with max OI at 25500 call and 23500 put side (12th May expiry). Nifty cumulative PCR closed at 0.93 for May 08.
• Derivatives data for Bank-nifty suggest max OI addition at 61000 call and 50000 put with max OI at 60000 for both call and put side (26th May expiry). Bank-nifty cumulative PCR closed at 0.86 for May 08.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded volatile in the previous week and closed with indecisive candlestick formation on the
  weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 23,700–23,500 level and resistance at 24,700–24,900 level

BANKNIFTY (WEEKLY)

• Banking index performed in line the benchmark and closed with indecisive candlestick formation on the weekly chart
• Banking index is likely to perform in line the Benchmark index in the coming week
• Banking index has support at 54,000-53,500 and resistance at 56,700-57,200 level

FINNIFTY (WEEKLY)

• FINNIFTY index performed better than the banking index and closed with indecisive candlestick formation on the
  weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 25,500-25,200 level and resistance at 26,600-26,800 level.

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Market FAQs – Weekly Summary

What is the current trend of Nifty?

Nifty is trading with a mildly bullish bias supported by broader market strength and easing volatility.

Which sector outperformed last week?

The auto sector outperformed strongly, led by stocks like M&M.

Why did PSU banks underperform?

PSU bank stocks witnessed profit booking and selective weakness despite overall market stability.

What does falling India VIX indicate?

A decline in India VIX signals reduced market fear and improving investor confidence.

How are midcap and smallcap stocks performing?

Midcap and smallcap indices are outperforming benchmark indices, indicating strong market breadth.

What does derivatives data suggest for Nifty?

Open interest positioning suggests support near 23500 and resistance around 25500.

What is the significance of PCR at 0.93?

PCR near 1 indicates balanced positioning with a slightly cautious bullish undertone.

Why are FIIs selling despite market gains?

FIIs may be adjusting global allocations while domestic institutions continue supporting the market.

How are global markets impacting Indian equities?

Positive cues from US and European markets are supporting overall market sentiment.

What should traders track next week?

Traders should monitor derivatives positioning, volatility trends, and sector rotation for market direction.

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