What may be anticipated from the Indian stock market in trading on May 21? 

Attention India
4 Min Read

The benchmark Nifty 50 closed the special trading session on Saturday over the 22,500 mark, and the domestic market indices finished with modest gains. The Nifty 50 closed 35.90 points, or 0.16%, higher at 22,502.00, while the Sensex increased 88.91 points, or 0.12%, to conclude at 74,005.94.

Due to the Lok Sabha elections in Mumbai on Monday, the Indian stock market was closed. On the daily chart, the Nifty 50 created a modest range candle, signifying a pattern of uptrend continuance. 

On the Nifty weekly chart, a bullish candlestick pattern resembling a Piercing line pattern appeared, suggesting further market upside. This week, a larger range-bound pattern between 22,800 and 21,750 has come into play. Having risen this week from within the lower range of 21,750 levels, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.

Nifty 50 Forecast

The Nifty 50 ended the special trading session on Saturday, May 18, up 35 points, maintaining its upward trend despite range-bound trading.

“Traders should exercise caution in the first hour to confirm any directional move as the Nifty closes above 22,500 for the first time in a few days, but it is still within the channel. A small-bodied candle on the daily chart indicates very little about the future direction of the price. Furthermore, heavy writing is visible in both Call and Put at the 22,500 strike, indicating a sense of inflection,” stated Rupak De, Senior Technical Analyst, LKP Securities.

The next rally’s pivotal levels may lie between 22,650 and 22,350. In fact, the next rally may occur in the next several months and fall between 4 and 7%. Even though the market is overbought, people are buying dips, according to Ambala.

She said that investing in quality equities and using a neutral trading approach would be advantageous. Nifty may encounter resistance in the upcoming session between 22.520 and 22,600, and crucial support between 22,450 and 22,380.

Forecast for the Bank Nifty

With the index seeing respectable gains of 1.64% previous week, the Bank Nifty ended the session on Saturday 84 points higher at 48,199.

According to Chandan Taparia, Head of Equity Derivatives and Technicals, Broking and Distribution, MOFSL, “Bank Nifty managed to hold its rising support trend line and flirted near its 50 DEMA. It managed to hold support near 47,000 zones and reclaimed its 50 DEMA. It formed a Pin bar pattern on daily scale with long lower shadow as buying is visible at lower zones.” 

In his opinion, the index must now maintain its hold above the 47,777 zones in order to rebound towards the 48,250 and 48,500 zones; on the downside, support is located at the 47,777 and 47,500 levels.

Notice: Attention India does not endorse the opinions or suggestions expressed above; rather, they represent the opinions of certain analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.

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