NIFTY Technical Outlook

Based on Market Closing on Thursday, May 30, 2024

In the last trading session, the Nifty closed at 22,488.65, down 216.05 points or 0.95%. The downtrend is likely to continue if the index remains below the intraday resistance level of 22,600.

The Nifty opened at 22,617.40 on a negative note and continued its downward trend, hitting an intraday low of 22,417. However, the index recovered from this low and closed at 22,488.65. The media and banking sectors closed with a positive bias, while all other sectors ended negatively. The biggest losers were the metal, IT, pharma, and FMCG sectors. Market breadth was negative, with 583 stocks rising, 1,897 falling, and 127 remaining unchanged. The top gainers were ICICI Bank, Axis Bank, HDFC Bank, and SBI, while major losers included Tata Steel, Tech Mahindra, Power Grid, and Titan.

From a technical standpoint, momentum indicators signal a positive trend. However, the Nifty closed below its short-term moving averages, forming the fourth consecutive black candle on the daily chart and closing below the previous day's close. This pattern indicates the continuation of the downtrend. On the lower side, the Nifty has intraday support at the 22,400 level. If the index trades and sustains below this level, the downtrend may continue in the coming days. The nearest intraday resistance is at 22,600. For a pullback rally, the index needs to surpass this level.

Intraday Levels: Support: 22,400, 22,300, 22,200 Resistance: 22,500, 22,600-22,700 (15-Minute Charts)

Positional Trading: Short-term Support: 22,250-21,750 Resistance: 22,800-23,300

Bank Nifty Technical Outlook

In the preceding trading session, Bank Nifty closed at 48,682.35, registering a gain of 181.00 points. Technically, the momentum indicators signal a positive trend, and the index remains above its medium-term and long-term moving averages. Additionally, the index formed a white candle on the daily chart and closed above the previous day's close, indicating a positive bias.

On the lower side, the index has short-term support at the 48,250 level. The nearest intraday resistance is at 49,000. The positive trend can continue today if the index moves above this level.

Intraday Levels: Support: 48,600, 48,300, 48,100 Resistance: 49,000, 49,300, 49,600 (15-Minute Charts)

Positional Trading: Short-term Support: 48,250-47,000 Resistance: 49,500-50,600