NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Tuesday, May 28, 2024

In the last trading session, the Nifty closed at 22,888.15, down 44.30 points or 0.19 percent. The downtrend will likely continue if the index remains below the intraday resistance level of 22,900.

The Nifty opened at 22,977.20 on a positive note and hit an intraday high of 22,998.60 in the morning trade. It then gradually fell, reaching an intraday low of 22,858.50, before finally closing at 22,888.15. The biggest sector gainers were pharma, media, financial services, and FMCG, while the biggest losers were realty, PSU banks, metal, and IT. Market breadth was negative, with 672 stocks rising, 1,777 falling, and 157 remaining unchanged. The top gainers in the Nifty were DIVISLAB, SBILIFE, HDFCLIFE, and GRASIM, while the major losers included ADANIPORTS, POWERGRID, BPCL, and COALINDIA.

From a technical standpoint, the Nifty remains above the short-term and long-term moving averages, and momentum indicators signal a positive trend. However, the index formed a black candle on the daily chart and closed below the previous day's close, indicating a slightly negative bias. On the downside, the Nifty has short-term support at the 22,800 level. If the index closes below this level, the downtrend may continue in the coming days. The nearest intraday resistance is at 22,900. For a pullback rally, the index needs to surpass this level.

Intraday Levels:  Support: 22,800, 22,700, 22,600 Resistance: 22,900, 23,000-23,100 (15-Minute Charts)

Positional Trading: Short-term support: 22,800-22,250 Resistance: 23,300-23,700

BANK NIFTY

In the preceding trading session, Bank Nifty closed at 49,142.15, registering a loss of 139.65 points. Technically, the momentum indicators signal a positive trend, and the index remains above the short-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 a negative bias.

On the higher side, the index has short-term resistance at the 49,500 level. If the index closes above this level, the positive trend can continue in the coming days. Otherwise, the index may consolidate below this level for a few days.

For intraday traders, the support levels are at 49,050, 48,750, and 48,500, while resistance levels are at 49,300, 49,650, and 49,950 as indicated by the 15-minute charts.

Positional traders should monitor short-term support levels at 48,250-47,000, with resistance at 49,500-50,600.