NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Wednesday, May 29, 2024
In the last trading session, the Nifty closed at 22,704.70, down 183.45 points or 0.80 percent. The downtrend is expected to continue if the index remains below the intraday resistance level of 22,800.
The Nifty opened at 22,762.80 on a negative note, continuing this trend to hit an intraday low of 22,685.40 before closing at 22,704.70. The pharma, metal, and media sectors closed with a positive bias, while all others closed with a negative bias. Financial services, banks, IT, and real estate were the biggest losers. Market breadth was negative, with 996 stocks rising, 1,469 falling, and 141 remaining unchanged. The top gainers in the Nifty were HINDALCO, POWERGRID, DIVISLAB, and NESTLEIND, while the major losers included HDFCLIFE, SBILIFE, TATACONSUM, and ICICIBANK.
From a technical standpoint, the Nifty remains above its medium-term and long-term moving averages. The momentum indicators signal a positive trend. However, the index formed a third consecutive black candle on the daily chart and closed below the previous day's close, indicating a negative bias. On the lower side, the Nifty has intraday support at the 22,700 level. If the index trades and sustains below this level, the downtrend may continue in the coming days. The nearest intraday resistance is at 22,800. For a pullback rally, the index needs to surpass this level.
Intraday Levels: Support: 22,700, 22,600 Resistance: 22,800, 22,900-23,000 (15-Minute Charts)
Positional Trading: Short-term support: 22,250-21,750 Resistance: 22,800-23,300
BANK NIFTY
In the preceding trading session, Bank Nifty closed at 48,501.35, registering a loss of 640.80 points. Technically, the momentum indicators signal a positive trend, and the index remains above the medium-term and long-term moving averages. However, the index formed a black candle on the daily chart and closed below the previous day's close, indicating the continuation of the downtrend. On the lower side, the index has short-term support at the 48,250 level. If the index closes below this level, the negative trend can continue in the coming days. The nearest intraday resistance is at 48,750. For a pullback rally, the index needs to surpass this level.
Intraday Levels: Support: 48,400, 48,125, 47,850 Resistance: 48,750, 49,000, 49,300 (15-Minute Charts)
Positional Trading: Short-term support: 48,250-47,000 Resistance: 49,500-50,600
