Finally, the market decisively surpassed the 22,600 level and gained solid strength to hit a fresh record high on May 23. The benchmark Nifty 50 moved closer to the psychological 23,000 mark, backed by banking & financial services, auto, and technology stocks. The index sustained its northward journey for the sixth consecutive session and formed a long bullish candlestick pattern on the daily charts. As the trend remains strong, the index is likely to climb above the 23,000 mark, and if it manages to sustain above the said level, then 23,500 can’t be ruled out in the coming sessions, experts said. The support is placed at 22,800 and then 22,600 levels.
Meanwhile, the Bank Nifty also recorded a strong performance and performed better than benchmarks. The index formed a strong bullish candlestick pattern on the daily timeframe after the rising trendline breakout and traded above all key moving averages. Now, it is likely to face resistance at 49,000-49,200 levels, with support at 48,500-48,300 levels.
The Nifty 50 jumped 370 points or 1.6 percent to end at a record closing high of 22,968, while the Nifty Bank rallied 987 points or 2.06 percent to 48,769 on Thursday, but the market breadth was negative. About 1,204 shares declined against advancing 1,043 shares on the NSE.
Chandan Taparia, Head – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
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The Nifty index witnessed a major breakout above the previous lifetime high of 22,795 zones and headed towards the 23,000 zones. It made a new record lifetime high and has been making higher highs for the last nine trading sessions. Now it has to hold above 22,850 zones for an up move towards 23,200 then 23,350 zones, whereas supports are shifting higher at 22,850 then 22,700 zones.
Key Resistance: 23,200, 23,350
Key Support: 22,850, 22,700
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Strategy: Buy for a Target of 23,400
Stop-Loss: 22,700
Deven Mehata, Equity Research Analyst at Choice Broking
The Nifty index showed strength on the daily chart as it has developed a strong bullish candle with heavy volume. In the upcoming days, the price can move up to 23,200 and 23,500 levels after crossing the psychological hurdle of 23,000 levels. Conversely, 22,800 and 22,700 serve as solid levels of support.
Key Resistance: 23,200, 23,500
Key Support: 22,800, 22,700
Strategy: Buy on dips near 22,800 levels for a target of 23,200 and 23,500 levels
Stop-Loss: 22,650 on closing basis
Mitesh Karwa, Technical Research Analyst at Bonanza Portfolio
The Nifty index has sustained above all its resistance zones after a volatile couple of weeks, indicating bullish strength.
The support on the downside is at 22,850, 22,700, and 22,550, whereas the immediate hurdles are at 23,050, 23,300, and 23,450. The highest open interest is at 23,000 on the Call side and 22,950 on the Put side. If Nifty crosses and sustains above 23,000, the bullish move is expected to continue.
On the indicator front, the momentum indicator relative strength index (RSI) is showing a reading of 68, and Nifty is trading above all its important EMAs (exponential moving averages), indicating strength.
Resistance: 23,050, 23,300 and 23,450
Support: 22,850, 22,700 and 22,550
Strategy: Buy on Dip
Stop-Loss: 22,700
Bank Nifty – Outlook and Positioning
Chandan Taparia, Head – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
The Bank Nifty index formed a strong bullish candle on the daily scale with the support of the 50-day exponential moving average (DEMA), indicating that the bullish momentum should continue. Now it has to continue to hold above 48,500 zones for an up move towards 49,250 then 49,500 zones, while on the downside the support has shifted higher at 48,250 then 48,000 levels.
Key Resistance: 49,250, 49,500
Key Support: 48,250, 48,000
Strategy: Buy with a Target at 49,500
Stop-Loss: 48,250
Deven Mehata, Equity Research Analyst at Choice Broking
Bank Nifty achieved a robust breakout above the 48,500 level and successfully closed above this threshold, signaling strength. On the higher side, Bank Nifty faces minor resistance in the range of 49,000-49,200 levels.
Once the index manages to close above this resistance range, it has the potential to move towards the target of 50,000, marking fresh all-time high levels.
Key Resistance: 49,000, 49,200
Key Support: 48,500, 48,.300
Strategy: Buy on dips near 48,500 levels for the target of 49,200 and 50,000 levels
Stop-Loss: 48,300 on closing basis
Mitesh Karwa, Technical Research Analyst at Bonanza Portfolio
The upside move is expected to continue as the trend is bullish. Support levels are at 48,500, 48,350, and 48,100, whereas the resistance is at around 48,950, 49,350, and 49,600.
On the indicator front, the momentum indicator RSI is showing a reading of 58, and the index is trading above all its important EMAs, which indicates strength.
Key Resistance: 48,950, 49,350, 49,600
Key Support: 48,500, 48,350, 48,100
Strategy: Buy
Stop-Loss: 48,100
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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