F&O Talk: Nifty Likely to Remain Range-Bound as Sudeep Shah Highlights Opportunities in Banking and IT with 7 Stock Picks.

The Indian stock market experienced a significant selloff on Friday, with both the Sensex and Nifty indices dropping over 1%. The Sensex fell by more than 1,092 points to close at 74,776, while the Nifty 50 saw a decline of nearly 359 points, settling at 23,547. This downturn was exacerbated by a sharp increase in the India VIX, which rose by approximately 8% to 16.18, reflecting heightened market volatility. The losses amounted to a staggering Rs 6 lakh crore in total market capitalization across all companies listed on the BSE, bringing the total down to Rs 465 lakh crore—a clear indication of the current market constraints fueled by passive fund flows linked to the recent MSCI index reshuffle.

From a technical analysis perspective, the Nifty index has demonstrated bearish indicators, trading below key moving averages that are currently exhibiting a flattening trend. With its daily RSI remaining in a sideways position and the Stochastic oscillator confined to a narrow range, there appears to be a lack of strong directional momentum. The last stretch of May showed the index trading within a narrow range of 1219 points—the tightest range since December 2025. Most notably, the late sell-off on Friday raised crucial questions about whether traders are merely locking in profits or if this could signal the start of a larger downward trend. The crucial support zone for the Nifty is identified between 23,300-23,250, and a breach below this level could intensify selling pressures, potentially pushing the index toward the psychologically important mark of 23,000.

In the banking sector, the Bank Nifty index also showed weakness, trading within its tightest range since January 2026. Although there was initial upward movement, the inability to sustain levels above 55,500 led to bearish formations that indicate selling pressure at higher ranges. The index is currently facing significant resistance at the 50-day EMA zone of 55,300-55,200, while its next crucial support is pegged between 53,500-53,400. Should this level be breached, further declines are anticipated, with subsequent support around 52,700. Given the current volatility and uncertainty surrounding geopolitical developments, it is advisable for traders to focus on stock-specific opportunities rather than aggressive bets on the index, thereby capitalizing on individual stocks that display favorable technical setups amidst broader market conditions.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)