Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 22

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note Wednesday tracking mixed cues from global peers.

The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading around 22,630 level, a premium of nearly 30 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity indices closed the cautious session flat, with the benchmark Nifty 50 holding above the 22,500 level.

The Sensex fell 52.63 points to close at 73,953.31, while the Nifty 50 settled 27.05 points, or 0.12%, higher at 22,529.05.

Nifty 50 formed a bullish engulfing candlestick pattern with good volume on the daily chart, indicating strength in the index.

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“On the 15-minutes chart, we can observe that the Nifty is now consolidating in a range between the 22,400 – 22,600 levels for the last two trading sessions. The near-term uptrend however remains intact as the index recently cleared a trading range with big green candles on the 15-minute chart. The 20-period MA remains above the 50-period MA on the 15-mins chart, indicating the recent positive MA crossover is still holding,” said Subash Gangadharan, Senior Technical Analyst at HDFC Securities.

On the Daily chart, Nifty continues to hold above the 20 and 50-day SMA, which is a positive signal. The 14-day RSI at 56.38 is rising and not overbought, which is encouraging. The uptrend is likely to resume once the 22,600 resistance levels are taken out, he added.

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Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,400 level, implying potential support at this level. On the Call side, significant OI concentrations are observed at the 23,000 and 23,200 levels, nearing all-time highs, said Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

The Nifty 50 index ended Tuesday’s volatile session marginally higher with gains of 27 points, holding above the 22,500 level.

“The index remained within the range of 22,400 and 22,600. Strong put writing at 22,400 and 22,500 might provide support to the Nifty. On the higher end, a decisive move above 22,600 might induce a rally towards 22,800 in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.

Till then, he believes, the index might continue consolidating as long as it remains within the range of 22,400 to 22,600.

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Bank Nifty Prediction

The Bank Nifty index declined 151 points to close at 48,048 on May 21.

“The Bank Nifty index failed to surpass the mark of 48,400, where the 20-DMA is placed. A break above this level will lead to a fresh move on the upside. The lower-end support is placed at 48,000, where the highest open interest is built up on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

The index needs to break these levels decisively on either side to have trending moves in the near term, Shah added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.