NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Thursday, May 23, 2024

In the last trading session, the Nifty closed at a record high of 22,967.70, up 369.85 points or 1.64%. The positive trend is expected to continue if the index trades and sustains above the resistance level of 23,000.

The session opened on a positive note at 22,614.10. After hitting an intraday low of 22,577.40, the index rose, testing the record high of 22,993.60, and finally closing at 22,967.70. All sectors except pharma closed with a positive bias. The biggest gainers were in the auto, banking, financial services, and IT sectors. Despite this, the market breadth was negative, with 1,140 stocks rising, 1,328 falling, and 147 remaining unchanged. The top gainers on the Nifty were ADANIENT, ADANI PORTS, LT, and M&M, while the major losers included SUNPHARMA, POWERGRID, HINDALCO, and COALINDIA.

From a technical standpoint, the Nifty remains above both short-term and long-term moving averages. Momentum indicators signal a positive trend. Additionally, the index formed a long white candle on the daily chart and closed near the day's high, suggesting a continuation of the uptrend. On the downside, the Nifty has intraday support at the 22,850 level, while the nearest intraday resistance is at 23,000. The positive trend will persist if the index sustains above the 23,000 resistance level.

Intraday Levels:  Support - 22,850, 22,700, 22,570 Resistance - 23,000, 23,100-23,200 (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 48,768.60, registering a gain of 986.65 points. Technically, the momentum indicators signal a neutral trend, although the index closed above the short-term moving averages. Furthermore, the index formed a long white candle on the daily chart and closed above the upper bound of the recent trading band, indicating a potential continuation of the uptrend.

On the downside, the index has intraday support at the 48,600 level. If the index remains above this level, the positive trend can continue in the coming days. The nearest intraday resistance is at the 48,850 level.

Intraday Levels:
Support - 48,600, 48,400, 48,100 Resistance - 48,850, 49,100, 49,300 (15-Minute Charts)

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