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Business News/ Markets / Stock Markets/  Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 23
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Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 23

Gift Nifty was trading around 22,658 level, a premium of barely 8 points from the Nifty futures’ previous close

Nifty 50 formed a bullish candlestick pattern with a long lower shadow on the daily charts. This pattern indicates support-based buying interest. (Photo: Bloomberg News)Premium
Nifty 50 formed a bullish candlestick pattern with a long lower shadow on the daily charts. This pattern indicates support-based buying interest. (Photo: Bloomberg News)

The Indian stock market benchmark equity indices, Sensex and Nifty 50, are expected to open flat as global markets are still digesting hawkish comments from US Fed meeting minutes.

The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 22,658 level, a premium of barely 8 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity indices closed the choppy session higher, with the benchmark Nifty 50 settling near the 22,600 level.

The Sensex rose 267.75 points to end at 74,221.06, while the Nifty 50 settled 68.75 points, or 0.31%, higher at 22,597.80.

Nifty 50 formed a bullish candlestick pattern with a long lower shadow on the daily charts. This pattern indicates support-based buying interest.

“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 59.83 is rising and not overbought, which is encouraging. With the near-term uptrend intact, Nifty could now head towards the life highs of 22,795 in the coming sessions," said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.

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 22,500 level, implying potential support at this level. On the call side, significant OI concentrations are observed at the 23,000 and 23,100 levels, nearing all-time highs, said Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

The Nifty 50 index ended a range-bound session on May 22 higher by 68 points at 22,598.

“Nifty continues to trend bullishly, finding support at 22,500. The index has been moving higher within a rising channel. The trend is likely to remain strong as long as it stays above 22,500. On the higher end, the index might move towards 22,800 in the short term, with immediate support at 22,600," said Rupak De, Senior Technical Analyst, LKP Securities.

He believes a dip below 22,600 might briefly take the index towards 22,500.

V.L.A. Ambala, Co-founder, Stock Market Today (SMT) noted that the Nifty index’s RSI displayed neutral readings of 60 and 63 on the daily and weekly timeframe, respectively, highlighting a sense of lul in the market. 

However, she believes prices could soon follow a fresh all-time high after the index takes support at Nifty’s 50-day SMA at the weekly timeframe. 

“In this situation, any dip can be taken as a buying or averaging opportunity. As we approach election results day, the market is becoming more volatile, a state that is likely to prevail in the upcoming weeks. Amid these developments, short positions should be hedged and a neutral approach should be adopted for the F&O segment," Ambala said.

According to her, in the next session, Nifty 50 may find support at around 22,550 and 22,480, and face resistance between 22,730 and 22,800 points.

Bank Nifty Prediction

The Bank Nifty index ended 266 points lower at 47,782 on Wednesday, forming a bearish candlestick pattern with a long lower shadow on the daily timeframe.

“The Bank Nifty index witnessed a volatile trading session on the weekly expiry day. The index is still trading below its 20-DMA, which is placed at 48,276. A break above this level will lead to sharp short-covering moves towards the 49,000 mark. Currently, the index is stuck in a broad range between 47,500 and 48,300. A break on either side will result in trending moves," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

However, Shah believes, within this range, the view remains bullish, and dips should be utilized to buy the index.

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.

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Published: 23 May 2024, 08:25 AM IST
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