Why Dalal Street Is Suddenly Nervous Despite Global AI Rally | Gift Nifty Cracks 190 Points

Added: 2026-05-11

[00:00:00]Pleasure.

[00:00:01]Okay, while we're talking about record highs for South Korea, take a look at our markets.

[00:00:07]A choppy last week and this morning you've got the gift nifty indicating about a 150 point down tick and now the implied open is settling in about 190 odd points lower as we speak right now.

[00:00:18]While we managed to latch onto the 24,200 mark, definitely slipped off from the 24,400 print, which we did conquer all through last week. And there was a really a lot of churn by in individual sectors and within sectors as well. I mean, look what happened to SBI post or rather pre its earnings on Friday itself. And then the numbers came out over the weekends, which of course we'll analyze, but the stock itself fell 7 and 1/2 waiting on the index. Others like an L&T, Axis, HDFC Bank, BEL, etc. as well weighed in a little bit heavy on the markets. But yes, increasingly it's been getting a very very stock specific market with better traction from the broader markets. At least that's the trend that we've been seeing over the last fortnight or so. But Kunal is here in the studios, let's ask him about what the market texture is looking like for this week and of course this Monday morning as well. Kunal, hi, good morning. What's it looking like the gift nifty after PM's comments?

[00:01:18]Definitely is taking a bit of a step back this morning. Yeah, it's taking a step back again and I think crude oil prices back to 104, 105 mark. It'll probably keep the markets under slight bit of check per se. There was also I think on Friday we saw the markets, the Bank Nifty and the Nifty showing a deep gash, especially for Bank Nifty where the post in the contributions from two major private sector two major banks.

[00:01:42]One of course is SBI, the other is HDFC Bank. You saw a bigger correction for the banking index.

[00:01:47]You know, we've managed to retest that 55,500 mark for the Bank Nifty. But then more importantly I think when you saw the data for the Nifty as well as the Bank Nifty, open interest, there was a 2% jump, a very mild jump in the open interest for the Nifty, but a 6% jump in the open interest for Bank Nifty, which means clear indication of a fresh short built up which happened on the banking index.

[00:02:07]So, that could put the markets or the benchmark indices back under some check.

[00:02:11]24,000 still remains to be a pivot zone for the index. We've been swinging around the this 500 odd points, 23,750 as a support on the spot levels for the Nifty, and 24,253 hundred as a resistance on the upside.

[00:02:26]We've been unable to break past above those levels, even though I think the mid caps and small caps have done reasonably well, but we'll just watch out for this major support point of 23,750. Till the time we hold on above those levels, so we can probably expect that this could just be a a broader term consolidation which the indices are playing through. Do you expect the Nifty to breach the 24,000 level today?

[00:02:46]Yeah, today I think it will be breached 24,000 mark because of that spike in crude oil prices or the up moving crude oil prices, the markets will probably realize that maybe I think we are looking at a markets or the indices just drifting mildly below the 24,000 mark.

[00:02:59]Mhm. But, any major concern there, Kunal, in terms of what if it breaches 24K and stays there? Is that a concern at all? I think the concern is not on the benchmark indices, the concern is actually on the health of the sectors because, you know, you for example, you were discussing [snorts] this earlier, the Nifty IT not participating, the Bank Nifty not participating. You had the private sector banking stocks which are acting as the limping factor for the markets. Now, you add to the fact even SBIs or name like the PSU banking names which adds to the, you know, worried list for the markets.

[00:03:29]And then the other large cap names, L&T etc. post results also went through a correction. So, that slew of large cap names, the lack of strong sectors, strong stocks, high weighted stocks not participating, that's the bigger concern for the markets.

[00:03:42]So, Kunal, how do you trade this morning? What stocks are you looking at?

[00:03:46]So, I'll go with one buy and one sell.

[00:03:47]AU Small Finance Bank is something which I'll be bullish on at the current levels. 1040-45 is where the stock closed on Friday. Still looking quite strong. Did pretty well for itself on Friday's trading session. Uh indicates that the stock was a little bit more resilient than the uh uh you know, the rest of the banking stocks. So, would look at a near-term target of 1065. Stop loss could be kept at 1030. The second would be a sell. So, I think uh most of the stocks like Voltas, Blue Star, etc., they are now trying to break below their previous swing supports. Voltas managed to break below the 1350 crucial support for itself. Uh so, uh would look out for a short-term downside. 1300 as an immediate target. Stop loss at 1340.

[00:04:25]Okay, a mix of a short