Nifty Technical analysisNifty Technical chart Analysis & Bank Nifty Technical chart Analysis 

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    For May 16, 2024 

    nagaraj shettiTechnical Analysis of Nifty & Bank Nifty by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today’s market performance.

    After showing a narrow range movement on Wednesday, Nifty witnessed sharp bounce back with high volatility on Thursday and closed the day higher by 203 points. After opening with a positive note, the market was not able to sustain the opening gains and slipped into weakness in the early to mid-part of the session. It displayed high volatility in the mid part by showing around 180-200 points of intraday swings of up and down in between. Sharp upside recovery has emerged in the later part of the session and Nifty finally closed near the highs.

    A small bullish candle was formed at the highs on daily chart with long lower shadow. Technically, this pattern resembles a formation of hanging man type formation. But some time such formations amidst uptrend more often act as uptrend continuation patterns.

    The formation of long lower shadows for two occasions in the last four sessions signals emergence of sharp buying on dips. This is positive indication and suggests more upside ahead. Immediate resistance of 22300 (mid part of long bear weekly candle of last week) has been taken out on the upside on Thursday and the Nifty is expected to reach another resistance of around 22600 levels (upper part of the last weekly candle) in the near term. Immediate support is at 22280 levels.

      Vaishali Parekh's stocks to buy todayTechnical Analysis of Nifty & Bank Nifty by Vaishali Parekh,
      Vice President — Technical Research at Prabhudas Lilladher

      Following strong global cues after the US stock market’s rally, the Indian stock market ended higher on Thursday. The Nifty 50 index shot up 203 points and closed at 22,403, while the BSE Sensex surged 676 points and finished at 73,663. The Bank Nifty index ended 289 points higher at 47,977. Cash market volumes on the NSE rose to ?1.17 lakh crore—the highest since May 03. The small-cap index outperformed the frontline indices even as the advance-decline ratio remained positive at 1.32:1.

      Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes that the Indian stock market mood has improved after the Nifty 50 index raced towards the 22,400 mark. The Prabhudas Lilladher expert said that the 50-stock index is now heading towards the 22,600 mark, and crucial support for Nifty today would be around 22,250.

      On the outlook for the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index in the initial half, with wild fluctuations witnessed between 22,050 and 22,300 levels, raced towards the 22,400 zone in the final hours to end the session on a strong note, easing out the sentiment. We anticipate the index will carry on with the positive move towards the 22,600 zone, with support now maintained near 22,250 levels and the bias improving.”

      “The Bank Nifty index, amid huge swings, took support near the 47,350 zone and, in the end, closed on a positive note near the 48,000 zone, with bias turning positive. Further rise can be anticipated in the coming days,” said Parekh.

      Parekh added that Nifty today has immediate support placed at 22,250 while the resistance is seen at 22,600. The Bank Nifty would have a daily range of 47,500 to 48,500.

        Deepak JasaniTechnical Analysis of Nifty & Bank Nifty by Mr. Deepak Jasani, Head of Retail Research, HDFC Securities.

        Nifty recovered in the last hour of trade on May 16 and surged to its highest level in seven sessions. At close, Nifty was up 0.92% or 203.3 points at 22403.9. Cash market volumes on the NSE rose to Rs.1.17 lakh cr – the highest since May 03. Smallcap index rose more than the Nifty even as the advance decline ratio remained positive at 1.32:1.

        Share opened lower Thursday in Europe due to some downbeat earnings after most Asian indices gained, tracking a Wall Street rally driven by hopes that inflation is heading back in the right direction.

        Nifty formed a hanging man like pattern though the top of this move is yet to be in place. It has formed 2 candles with long lower shadows in the past 4 sessions, reflecting the strength of bottom fishing. Nifty could now aim towards 22499-22568 band in the near term on the up while 22054 could be a support.

          Amol Athawale, VP-Technical Research, Kotak SecuritiesWeekly Market wrap by Amol Athawale,
          VP-Technical Research, Kotak Securities:

          In the last week, the benchmark indices corrected sharply, the nifty ends 1.87 percent lower while the Sensex was down over 1200 points. Among Sectors, PSU Banks drop 6 percent, Oil, and Gas indices shed 5 percent, whereas FMCG and Auto indices outperformed, and FMCG both indices gained over 1 percent.

          During the week, market slipped below 20 and 50 day SMA (Simple Moving Average) and consistently faced selling pressure at higher levels. Technically, on daily and weekly charts it has formed double top formation, which indicates upward trend has slowed down. In addition, on weekly charts it has formed long bearish candle, which is largely negative.

          We are of the view that, the short-term texture of the market is still on the weak side but due to temporary oversold conditions, we could see one pullback rally from the current levels. For traders now, 22000/72500 and 21950/72300 are important support levels. Above the same, the market could bounce back up to 22200/73000. Further upside may also continue which could life the market till 50 day SMA or 22300/73300. On the flip side, fresh selling possible only after dismissal of 21950/72300, below which the market could correct till 21800-21700/71800-71500. For Bank Nifty, after a sharp correction currently it is trading near 50 day SMA. For the traders 47500 would be the key level to watch out, above the same it could bounce back till 20 day SMA or 48200. On the flip side, below 47500 the chances of hitting 47100-47000 would turn bright.

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