Sumeet Bagadia’s Breakout stocks

Indian benchmark indices ended marginally higher on Wednesday, supported primarily by gains in heavyweight stocks such as Reliance Industries, even as broader market sentiment remained cautious amid volatility throughout the trading session. The Sensex advanced 118 points, or 0.16%, to close at 75,318.39, while the Nifty 50 gained 41 points, or 0.17%, to settle at 23,659.

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Nifty 50 Outlook

The Nifty 50 opened on 20 May 2026 with a sharp gap-down at 23,457.25, reflecting weak global and domestic sentiment during the opening trade. Early selling pressure dragged the benchmark to an intraday low of 23,397.30. However, the market witnessed strong buying support from lower levels, resulting in a steady intraday recovery.

The benchmark gradually erased its opening losses, filled the gap-down zone, and climbed to an intraday high of 23,690.90 before ending the session at 23,659.00. The recovery indicates that investors and traders continue to accumulate quality stocks on dips despite near-term uncertainty.

According to Sumeet Bagadia, the daily chart formation suggests improving short-term market sentiment. The emergence of a bullish candlestick pattern after a sharp intraday recovery highlights strong buying interest near support zones and signals resilience in the broader trend.

From a technical perspective:

• Immediate support for Nifty is placed in the 23,350–23,400 zone

• Immediate resistance is visible around 23,900–23,950

• RSI stands at 45.64, indicating gradual improvement in momentum, though the index is yet to enter a stronger bullish zone

• Option chain data indicates aggressive call writing at 23,700 and 23,800 strikes, suggesting resistance at higher levels

• Strong put writing at 23,600 and 23,500 strikes indicates traders are gradually shifting support levels upward

Market experts believe that sustaining above the 23,600 mark may strengthen bullish momentum in the near term, while a decisive move above 23,900 could trigger fresh upside traction.

Bank Nifty Outlook

The Bank Nifty index also witnessed a highly volatile session. The banking benchmark opened sharply lower at 53,015.70 and slipped further to an intraday low of 52,836.10 during the initial phase of trade. However, buying interest emerged strongly at lower levels, helping the index recover throughout the session.

The index eventually filled its morning gap-down and surged to an intraday high of 53,640.90 before settling at 53,562.20, up 153.05 points or 0.29%.

Sumeet Bagadia stated that the daily chart pattern of Bank Nifty reflects strengthening recovery momentum and renewed buying support in frontline banking counters.

Key technical observations for Bank Nifty include:

• Immediate support zone is placed between 52,800 and 52,900

• Key resistance is seen in the 54,250–54,350 range

• RSI at 41.29 indicates weak-to-neutral momentum, though gradual recovery signals are emerging

• Sustaining above support levels will remain critical for continuation of the rebound

Market Strategy for Traders

Bagadia believes traders should closely monitor immediate resistance zones in both benchmark indices, as a sustained breakout above these levels may confirm stronger recovery momentum in the coming sessions.

Despite volatility, the sharp rebound from lower levels and easing intraday pressure indicate improving confidence among market participants. However, sector-specific participation remains selective, suggesting traders should continue focusing on stock-specific opportunities rather than aggressive broad-based positioning.

The overall undertone remains cautiously optimistic as long as Nifty sustains above key support levels and banking stocks continue to witness buying on declines.