NIFTY Technical Outlook

Market Closing on Saturday, May 18, 2024

In the last trading session, the Nifty closed at 22,502.00, up 35.90 points or 0.16%. The positive trend will likely continue if the index remains above the 22,500 level.

The Nifty opened the last session on a positive note at 22,512.80, tested an intraday high of 22,520.30, and closed at 22,502.00. All sectors closed positively, with the biggest gains in media, realty, pharma, and PSU banks. The market breadth was positive, with 1,698 stocks rising, 730 falling, and 181 remaining unchanged. The top gainers in the Nifty were NESTLEIND, POWERGRID, TATAMOTORS, and HINDALCO, while the major losers included JSWSTEEL, M&M, MARUTI, and LTIM.

From a technical standpoint, the Nifty remains above both its short-term and long-term moving averages. The momentum indicators signal a neutral trend. However, the index formed a white candle on the daily chart and closed above the previous day's close, indicating a potential continuation of the uptrend. The Nifty has intraday support at the 22,500 level. To sustain the uptrend, the index needs to remain above this level, with the nearest intraday resistance at 22,600.

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 48,199.90, registering a gain of 83.85 points. Technically, the momentum indicators signal a negative trend, yet the index remains above the short-term and long-term moving averages. Additionally, the index formed a Doji candle on the daily chart and closed above the previous day's  white candle. This pattern suggests that the momentum remains in favor of the bulls. On the higher side, the index has intraday resistance at 48,250. If the index moves above this level, the positive trend can continue in the coming days. The nearest intraday support is at the 48,000 level.

Intraday Levels:  Support: 48,000, 47,800, 47,600 Resistance: 48,250, 48,500, 48,750 (15-Minute Charts)

Positional Trading: Short-term support: 47,750-46,650 Resistance: 48,550-49,500