NIFTY Technical Outlook

Based on Market Closing on Friday, May 24, 2024

In the last trading session, the Nifty closed at 22,957.10, down 10.55 points or 0.05 percent. The positive trend will continue if the index trades above the intraday resistance level of 23,030.

During the session, the Nifty opened at 22,930.80 on a negative note and hit an intraday low of 22,908.00 in the morning trade. The index then rose, testing a record high of 23,026.40 before closing at 22,957.10. The biggest sector gainers were media, financial services, and banks, while FMCG, realty, IT, and pharma sectors saw declines. Market breadth was negative, with 985 stocks rising, 1,505 falling, and 127 remaining unchanged. The top gainers under the Nifty were HDFC Bank, L&T, Bharti Airtel, and BPCL, while the major losers included Adani Ports, Tata Consumer Products, Tech Mahindra, and ITC.

From a technical standpoint, the Nifty remains above 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 but closed just below the previous day's close, indicating potential consolidation. On the downside, the Nifty has intraday support at the 22,900 level, while the nearest intraday resistance is at 23,030. The positive trend will continue if the index trades and sustains above this resistance level. Otherwise, the index may consolidate below this level for a few days.

Intraday Levels:  Support: 22,900, 22,800, 22,700 Resistance: 23,030, 23,150-23,250 (15-Minute Charts)

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

Bank Nifty Technical Outlook

In the preceding trading session, Bank Nifty closed at 48,971.65, registering a gain of 203.05 points. Technically, the momentum indicators signal a positive trend, and the index remains above both its short-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, suggesting the possibility of a continued uptrend.

On the downside, the index has intraday support at the 48,800 level. If the index remains above this level, the positive trend is likely to continue in the coming days. The nearest intraday resistance is at 49,050.

Intraday Levels: Support: 48,800, 48,600, 48,400 Resistance: 49,050, 49,300, 49,250 (15-Minute Charts)

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