NIFTY Technical Outlook

Based on Market Closing on Wednesday, May 22, 2024

In the last trading session, the Nifty closed at 22,597.80, up 68.75 points or 0.31%. The positive trend is expected to continue if the index trades and sustains above the resistance level of 22,600.

The Nifty opened positively at 22,576.60, dipped to an intraday low of 22,483.20, and then gradually rose to test an intraday high of 22,629.50, before closing at 22,597.80. The biggest sector gainers were FMCG, realty, media, and IT, while the major losers were metal, banks, and financial services. Market breadth was negative, with 1,158 stocks rising, 1,313 falling, and 142 remaining unchanged. The top Nifty gainers were CIPLA, HINDUNILVR, TATACONSUM, and COALINDIA, whereas the major losers included SHRIRAMFIN, SBIN, APOLLOHOSP, and HINDALCO.

From a technical standpoint, the Nifty remains above both its short-term and long-term moving averages, with momentum indicators signaling a positive trend. The index formed a small white candle on the daily chart, closing above the previous day's close, which suggests a potential continuation of the uptrend. Intraday support is seen at the 22,500 level, with the nearest resistance at 22,600. Sustaining above this resistance level will likely maintain the positive trend.

Intraday Levels  Support: 22,500, 22,400, 22,300 Resistance: 22,600, 22,700-22,800 (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 47,781.95, registering a loss of 266.25 points. Technically, the momentum indicators signal a negative trend, and the index remains below the short-term moving averages. Additionally, the index formed a black candle on the daily chart, closing below the previous day's close, indicating a negative bias.

On the lower side, the index has trend line support at the 47,450 level. If the index closes below this level, the downtrend is likely to continue in the coming days. Otherwise, a pullback rally can be expected from the support area. The nearest short-term resistance is at the 48,200 level, and for a bullish trend to emerge, the index needs to close above this level.

Intraday Levels   Support: 47,800, 47,600, 47,400  Resistance: 48,000, 48,200, 48,400 (15-Minute Charts)

Positional Trading  Short-term Support: 47,000-46,000 Resistance: 48,250-49,500