NIFTY Technical Outlook

Based on Market Closing on Friday, May 31, 2024

In the last trading session, the Nifty closed at 22,530.70, up 42.05 points or 0.19 percent. The positive trend will continue if the index moves above the intraday resistance level of 22,640.

Nifty opened 22,568.10 on a positive note and tested an intraday high of 22,653.80 before closing at 22,530.70. The realty, metal, banks, and financial services sectors were the top gainers, while the media, IT, pharma, and FMCG sectors lagged. Market breadth was negative, with 1,062 stocks rising, 1,427 falling, and 119 remaining unchanged. The top gainers under the Nifty were Adani Enterprises, Adani Ports, Shriram Finance, and Coal India. Major losers included Divi's Laboratories, Nestle India, Tata Consultancy Services, and Maruti Suzuki.

From a technical standpoint, momentum indicators signal a positive trend. However, the Nifty remains below the short-term moving averages. In the last session, the index formed a small black candle on the daily chart and closed inside the previous day's candle, indicating potential consolidation. On the higher side, Nifty has intraday resistance at the 22,640 level; if the index trades and sustains above this level, the positive trend may continue. The nearest intraday support is at 22,500.

Intraday Levels: Support: 22,500, 22,400, 22,300 Resistance: 22,640, 22,740-22,825 (15-Minute Charts)

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

Top of Form

 Bank NIFTY

In the preceding trading session, Bank Nifty closed at 48,983.90, registering a gain of 301.60 points. Technically, the momentum indicators signal a positive trend, with the index remaining above the 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 downside, the index has intraday support at the 48,800 level, while resistance is at 49,070. The positive trend can continue today if the index exceeds the 49,070 level.

Intraday Levels: Support: 48,800, 48,550, 48,300 Resistance: 49,070, 49,300, 49,600 (15-Minute Charts)

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