NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Friday, May 17, 2024

In the last trading session, the Nifty closed at 22,466.10, up 62.25 points or 0.28%. The positive trend is expected to continue if the index remains above the 22,400 level.

During the session, Nifty opened positively at 22,415.30, dipped to an intraday low of 22,345.70, then rose to test the intraday high of 22,502.20 before closing at 22,466.10. All sectors, except IT and pharma, closed positively. The biggest sector gainers were auto, realty, metal, and media. Market breadth was positive, with 1,614 stocks rising, 875 falling, and 120 remaining unchanged. Top gainers included M&M, JSW Steel, Grasim, and UltraTech Cement, while major losers were TCS, Cipla, SBI Life, and HCL Tech.

From a technical standpoint, Nifty remains above both short-term and long-term moving averages. 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. On the downside, Nifty has intraday support at the 22,400 level. To sustain the uptrend, the index must stay above this level. The nearest intraday resistance is at the 22,500 level.

Intraday Levels:  Support: 22,400, 22,300, 22,200 Resistance: 22,500, 22,600-22,700 (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 48,115.65, registering a gain of 138.60 points. Technically, momentum indicators signal a negative trend, but the index closed above the short-term moving averages. Additionally, the index formed a white candle on the daily chart and closed above the previous day's Doji candle. This pattern indicates the momentum in favor of the bulls.

On the downside, the index has intraday support at 48,000. If the index remains above this level, the positive trend can continue in the coming days. The nearest intraday resistance is at 48,250.

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